Rohmer v. Commissioner
United States Tax Court
Petitioner, a nonresident alien, not engaged in a trade or business in the United States and not having an office or place of business therein, received from an American publishing company a lump sum payment for the first and second American and Canadian serial rights in a book written by him. Petitioner's United States agent received the payment and retained 10 percent for his commission.
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Petitioner, a nonresident alien, not engaged in a trade or business in the United States and not having an office or place of business therein, received from an American publishing company a lump sum payment for the first and second American and Canadian serial rights in a book written by him. Petitioner's United States agent received the payment and retained 10 percent for his commission. Held: First, the payment was in the nature of a royalty paid for a license to use the serial rights and represents taxable income within the meaning of section 211 (a) of the Internal Revenue Code; second,…
1Opinion of the Court
OPINION.
Arundell, Judge:
The income in question was received by the petitioner, Sax Rohmer, through his United States agent, in payment for the first and second serial rights to a story written by him entitled “The Island of Fu Manchu.” Petitioner takes the position that the income was derived from the sale of personal property, which is not taxable to him, and that if it was not derived from a sale the income does not fall within the category of “other fixed or determinable annual or periodical gains, profits, or income” because it was a lump sum payment. The applicable statute, section 211…
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- Cory v. CommissionerUnited States Tax Court · 1955
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