L. S. Plaut & Co. v. Commissioner

BUFFINGTON, Circuit Judge.

In adjusting its taxes, an old, large, and highly successful department store sought to include in its capital account $200,000 for good will. There was proof of the steady growth of its business, of the increase of its profits, and of the high regard in the way of good will it had earned and retained in the community where it did business for some sixteen years. Indeed, these factors quite justified a much greater good will value than the $200,000 claimed. But inasmuch as a partnership agreement fixed the value at that figure in-case of the death or retirement of…