- 101 -
States for a period of years as additional noncash consideration,
citing Alstores Realty Corp. v. Commissioner, 46 T.C. 363 (1966).
Respondent’s notice determination was based on alternative
valuation dates in 1990 and 1992. The use of two possible dates
is likely due to confusion over when the DHL trademark should be
valued. The confusion probably arose because the transaction and
prices to be paid were agreed to during 1990 and the actual sale
or exchange occurred in 1992. We have no question about the fact
that the taxable event occurred in 1992, and any additional
capital gain from petitioner’s sale of its interest in the DHL
trademark would be includable in the 1992 taxable year.13 On
brief, respondent advances only the 1990 valuations of his
experts, and petitioners do not argue that 1992 would be the more
appropriate year for valuation. Petitioners, on brief, argue
that any capital gains adjustment attributable to the sale of the
trademark should be recognized in 1992. It therefore appears
undisputed that any such adjustment should be recognized in 1992,
but valued as of the time the right to acquire was created (1990)
for purposes of section 482.14
13 On brief, both parties advocated 1992 as the year of any
recognition of income from the trademark sale.
14 Petitioners also argued that the sale of the trademark
occurred after the foreign investors gained collective control of
the international entity so that sec. 482 should not apply for
lack of the requisite control. We have already addressed that
question and resolved it adversely to petitioners.
Page: Previous 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 NextLast modified: May 25, 2011