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goodwill developed by him. * * * [The taxpayer] has
failed, however, to show a sale of assets occurred.
Id.
In Foxe v. Commissioner, 53 T.C. 21, 26 (1969), we
considered whether payments made to an insurance agent were made
pursuant to the sale or exchange of a capital asset to his former
insurance company upon the cancellation of his employment
contract. The taxpayer claimed that in the course of his
business he built up “something of value, an organization” that
the insurance company acquired. Id. Moreover, his personal
contacts with customers, which were important to the insurance
company, were “something of real value”. Id.
We concluded that even if the taxpayer had “built up an
organization of value, it was not his to sell since * * * [the
insurance company] under the contract owned all the property
comprising such organization. As to the customer contacts
* * *. They were not his to sell.” Id. It was held that the
taxpayer did not sell or exchange a capital asset, and the
payments were taxable as ordinary income.
Section 1001(c) provides that gain is recognized upon the
sale or exchange of property. “The word ‘sale’ means ‘a transfer
of property for a fixed price in money or its equivalent’”.
Schelble v. Commissioner, supra at 1394 (quoting Iowa v.
McFarland, 110 U.S. 471, 478 (1885)); see also Commissioner v.
Brown, 380 U.S. 563, 570 (1965). “Exchange” means an exchange of
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