BLUM v. COMMISSIONER OF INTERNAL REVENUE

Nos. 10038, 10039.

183 F.2d 281 (1950)

BLUM v. COMMISSIONER OF INTERNAL REVENUE.

United States Court of Appeals Third Circuit.

Decided June 30, 1950.


Attorney(s) appearing for the Case

Earl G. Harrison, Philadelphia, Pa. (Fred L. Rosenbloom, Thomas P. Glassmoyer, Philadelphia, Pa., Schnader, Harrison, Segal & Lewis, Philadelphia, Pa., on the brief), for petitioner.

Melva M. Graney, Washington, D. C. (Theron Lamar Caudle, Assistant Attorney General, Ellis N. Slack, Special Assistant to the Attorney General, on the brief), for respondent.

Before BIGGS, Chief Judge, and MARIS and KALODNER, Circuit Judges.


KALODNER, Circuit Judge.

These appeals are from the decision of the Tax Court.

The question presented is whether periodical payments to the petitioner ("taxpayer") of a percentage of a manufacturing corporation's net sales of certain products were compensation taxable as ordinary income or whether they were consideration paid for the sale of several patents constituting capital assets and as such taxable as long-term capital gains.

The answer depends...

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