William Norwalk, Transferee, et al. - Page 22

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          corporation independent of the abilities, skills, and reputation            
          of the individual accountants.  "Ability, skill, experience,                
          acquaintanceship, or other personal characteristics or                      
          qualifications do not constitute goodwill as an item of property,           
          nor do they exist in such form that they could be the subject of            
          transfer."  Providence Mill Supply Co. v. Commissioner, 2 B.T.A.            
          791, 793 (1925).  In O'Rear v. Commissioner, 28 B.T.A. 698, 700             
          (1933), affd. 80 F.2d 473 (6th Cir. 1935), we stated that "it is            
          at least doubtful whether a professional man can sell or dispose            
          of any goodwill which may attach to his practice except perhaps             
          by contracting to refrain from practicing."  (Emphasis added.)              
          Because there was no enforceable contract which restricted the              
          practice of any of the accountants at the time of the                       
          distribution, their personal goodwill did not attach to the                 
          corporation.  Any goodwill transferred to the partnership was               
          that of the individual accountants, not the corporation.  Under             
          these circumstances, we conclude that the value of any "customer-           
          based intangibles" that the corporation may have had was nominal.           
          We hold that petitioners have met their burden of establishing              
          that value is not allocable to the customer-based intangibles as            
          determined by respondent.                                                   
          Tangible Asset Value                                                        









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