MacCallum Gauge Co. v. Commissioner
United States Board of Tax Appeals
Upon the evidence, held that a patent was owned by one individual instead of two and that since immediately after the exchange of the patent to the petitioner for stock, such individual was not in control of the petitioner, this proceeding is governed by the general provision that the basis for the determination of the deduction for exhaustion allowance on the patent is the cost of such patent to the petitioner.
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Upon the evidence, held that a patent was owned by one individual instead of two and that since immediately after the exchange of the patent to the petitioner for stock, such individual was not in control of the petitioner, this proceeding is governed by the general provision that the basis for the determination of the deduction for exhaustion allowance on the patent is the cost of such patent to the petitioner. Held, further, that the cost of the patent is measured by the fair market value of the stock issued therefor. which, upon the evidence, is determined.
1Opinion of the Court
OPINION.
MoMahon:
This is a proceeding for the redetermination of a deficiency in income tax for the calendar year 1930 in the amount of $485.48. It is alleged that the respondent erred in determining that *545the basis for the exhaustion or depreciation of a patent secured by James MacCallum, Jr., on a liquid measuring device and assigned by him to petitioner on April 30, 1930, was the cost thereof to the assignor, instead of determining that the proper basis is the value of the patent on the date when it was assigned to the petitioner, which value, it is alleged, was $119,587.58.
The petitioner is…
2Cited by7 opinions
- Pittsburgh Terminal Corp. v. CommissionerUnited States Tax Court · 1973
- National Can Corp. v. United StatesDistrict Court, N.D. Illinois · 1981
- Central Paper Co. v. CommissionerUnited States Tax Court · 1945
- MacCallum Gauge Co. v. CommissionerUnited States Board of Tax Appeals · 1935
- Pittsburgh Terminal Corp. v. CommissionerUnited States Tax Court · 1973
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