Realty Loan Corp. v. Commissioner
United States Tax Court
Held: 1. The $ 86,500 sales price of petitioner's mortgage-servicing business was in part for capital assets of the nature of goodwill and in part for its right to future income from servicing fees. 2. On the basis of the evidence $ 10,000 is allocated as the sales price of the capital assets and the balance of the $ 86,500 as the sales price of the right to future income. 3. The gain on the sale of the capital assets is taxable to petitioner as long-term capital gain and…
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Held: 1. The $ 86,500 sales price of petitioner's mortgage-servicing business was in part for capital assets of the nature of goodwill and in part for its right to future income from servicing fees. 2. On the basis of the evidence $ 10,000 is allocated as the sales price of the capital assets and the balance of the $ 86,500 as the sales price of the right to future income. 3. The gain on the sale of the capital assets is taxable to petitioner as long-term capital gain and the gain on the sale of the right to future income is taxable to it as ordinary income. 4. Since both the capital assets…
1Opinion of the Court
OPINION
Petitioner contends that the primary assets of its mortgage-servicing business which it sold to S & B were its mortgage portfolio, its name, its going-concern value, and its contracts with Mutual Trust and Bankers Life. Petitioner argues that these intangible assets are capital assets in the nature of goodwill. Bespondent contends that the only asset of any value which petitioner sold to S & B for the $86,500 was the right to receive the future service fees from mortgages which petitioner was servicing at the time of the sale. Bespondent contends that petitioner had no intangible…
2Cases cited19 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Hort v. CommissionerSupreme Court of the United States · 1941
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
14 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- First Pennsylvania Banking & Trust Co. v. CommissionerUnited States Tax Court · 1971
- Foy v. CommissionerUnited States Tax Court · 1985
- Realty Loan Corporation v. Commissioner of Internal Revenue, Realty Loan Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1973
- Mingo v. CommissionerCourt of Appeals for the Fifth Circuit · 2014
- First Nat'l Bank v. CommissionerUnited States Tax Court · 1975
3 more not listed; retrieve them via the Exa API.