Foote v. Commissioner
United States Tax Court
Petitioner, a tenured professor at Southern Methodist University, resigned his position and gave up his tenure in return for negotiated compensation. Held: Tenure is not a capital asset and petitioner's release of his tenure was not a sale or exchange. The amount received by petitioner on termination of his contract was taxable as ordinary income rather than capital gain.
1Opinion of the Court
Merrill J. Foote, Petitioner v. Commissioner of Internal Revenue, Respondent
Foote v. Commissioner
Docket No. 9667-81
United States Tax Court
81 T.C. 930; 1983 U.S. Tax Ct. LEXIS 8; 81 T.C. No. 57;
December 7, 1983, Filed
Decision will be entered for the respondent.
Petitioner, a tenured professor at Southern Methodist University, resigned his position and gave up his tenure in return for negotiated compensation. Held: Tenure is not a capital asset and petitioner's release of his tenure was not a sale or exchange. The amount received by petitioner on termination of his contract was taxable as…
2Cases cited20 opinions
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
- Commissioner of Internal Revenue v. José FerrerCourt of Appeals for the Second Circuit · 1962
- Luna v. CommissionerUnited States Tax Court · 1964
- Commissioner of Internal Revenue v. Starr Bros., IncCourt of Appeals for the Second Circuit · 1953
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