Associated Partnership I, Inc. v. Huddleston

OPINION

ANDERSON, Justice.

In this direct tax appeal, the Chancellor held that the capital gain realized from the sale of a partnership interest by the taxpayer was classified as “business earnings.”1 Because we conclude that the capital gain did not arise from a transaction in the regular course of the taxpayer’s business, we hold the gain was “nonbusiness earnings.” We, therefore, reverse the Chancellor’s judgment, which denied a full refund of corporate excise taxes.

We also hold that the commercial domicile of the taxpayer was not in Tennessee and that, therefore, the nonbusiness earnings…