Appalachian Electric Power Co. v. United States, (1958)

4 Citing cases

  1. Nelson Weaver Realty Company v. C.I.R

    307 F.2d 897 (5th Cir. 1962)   Cited 36 times
    Finding sale of mortgage servicing contract along with files, ledgers, and records to be a capital asset

    he result of its long standing relationship with New York Life, constituted property which was undoubtedly the proper subject of sale. Eliasberg Bros. Mercantile Co. v. Grimes (1920), 204 Ala. 492, 86 So. 56, 57, 11 A.L.R. 300; Boyd v. City of Selma (1892), 96 Ala. 144, 11 So. 393, 394, 16 L.R.A. 729; Alabama State Federation of Labor v. McAdory (1944), 246 Ala. 1, 18 So.2d 810, certiorari granted, 323 U.S. 703, 65 S.Ct. 191, 89 L.Ed. 567, certiorari dismissed, 325 U.S. 450, 65 S.Ct. 1384, 89 L.Ed. 1725; Carter v. Knapp Motor Co. (1943), 243 Ala. 600, 11 So.2d 383, 144 A.L.R. 1177; Lash v. State (1943), 244 Ala. 48, 14 So.2d 229; Hill Grocery Co. v. Carroll (1931), 223 Ala. 376, 136 So. 789; Stewart Fontaine v. Hargrove (1953), 23 Ala. 429; Commissioner v. Stephens-Adamson Mfg. Co., 7 Cir., 1931, 51 F.2d 681; Citizens State Bank of Barstow, Texas v. Vidal, 10 Cir., 1940, 114 F.2d 380, 382; Lawrence v. O'Connell, D.C., R.I., 1956, 141 F. Supp. 316, affirmed 1 Cir., 1956, 238 F.2d 476; Appalachian Electric Power Co. v. United States, 1958, 158 F. Supp. 138, 141 Ct.Cl. 367; Jones v. Corbyn, 10 Cir., 1950, 186 F.2d 450, 453; 3B Mertens Law of Federal Income Taxation, ยง 2212, p. 62 et seq. And see also Income Tax Reg. ยง 1.1221-1(a): "The term `capital assets' includes all classes of property not specifically excluded by ยง 1221."

  2. Leh v. Commissioner of Internal Revenue

    260 F.2d 489 (9th Cir. 1958)   Cited 35 times
    Involving a gasoline distribution contract

    The decision of the Tax Court is affirmed. We rely on the reasoning, as applied to the facts in this case, of Commissioner of Internal Revenue v. Starr Bros., supra; the majority opinion in Commissioner of Internal Revenue v. Pittston Co., 2 Cir., 1958, 252 F.2d 344; Roscoe v. Comm'r, 5 Cir., 1954, 215 F.2d 478; General Artists Corp. v. Comm'r, 2 Cir., 1953, 205 F.2d 360, certiorari denied 346 U.S. 866, 74 S.Ct. 105, 98 L.Ed. 376; Appalachian Elec. Power Co. v. United States, Ct.Cl. 1958, 158 F. Supp. 138 (distinguishing the lease cases such as Galonsky, supra); McCartney v. Comm'r, 1949, 12 T.C. 320. With Chief Judge Swan, we refuse to follow the majority opinion in Jones v. Corbyn, supra, and rely on the "closely analogous situation" in Bingham v. Comm'r, 2 Cir., 1939, 105 F.2d 971, 972; and in Hort v. Comm'r, 1941, 313 U.S. 28, 30, 61 S.Ct. 757, 85 L.Ed. 1168. Commissioner of Internal Revenue v. Starr Bros., supra, 204 F.2d at page 674.

  3. Billy Rose's Diamond Horseshoe, Inc. v. United States

    322 F. Supp. 76 (S.D.N.Y. 1971)   Cited 4 times

    Commissioner of Internal Revenue v. McCue Bros. Drummond, Inc., 210 F.2d 752 (1954); and similarly, McAllister v. Commissioner of Internal Revenue, 157 F.2d 235 (1946) (sale of life interest to remainderman). The position of the Second Circuit has been followed in the Ninth Circuit (Leh v. Commissioner of Internal Revenue, 260 F.2d 489 (1958)); and apparently by the Tenth Circuit (Wiseman v. Halliburton Oil Well Cementing Co., 301 F.2d 654); and the Court of Claims (Appalachian Electric Power Co. v. United States, 158 F. Supp. 138, 141 Ct.Cl. 367 (1958)). On the other hand, the Third Circuit apparently rejects the Starr Bros. line of cases (Commissioner of Internal Revenue v. Goff, 212 F.2d 875 (1954)), and the Fifth Circuit does also (United States v. Dresser Industries, Inc., 324 F.2d 56 (1963)) although it followed the Second Circuit rule at one time (Roscoe v. Commissioner of Internal Revenue, 215 F.2d 478 (1954)).

  4. Kathman v. Comm'r of Internal Revenue

    50 T.C. 125 (U.S.T.C. 1968)   Cited 1 times

    and the cancellation of an employment contract,Appalachian Electric Power Co. v. United States, 158 F.Supp. 138 (Ct.Cl. 1958). were treated as ordinary income and not as capital gains.