Fish v. Comr., T.C. Memo. 2013-270

(petitioner received income from her husband's S corporation in transaction involving I.R.C. Sec. 351 in which property was contributed to corporation in return for stock; property in question was an amortizable I.R.C. Sec. 197 intangible property which is treated as I.R.C. Sec. 1245 property; I.R.C. Sec. 1239 treats gain from sale of depreciable property between related taxpayers as ordinary income and not capital gain; court noted that 50 percent ownership rule applied and examined voting rights and valuation of both common and preferred stock of corporation, and held that petitioner's gain was ordinary in nature