Booker v. Commissioner
United States Tax Court
Held, amount received by petitioners in settlement of threatened litigation for recovery of anticipated loss of profits and increased rental expense is taxable as ordinary income under section 22(a), I. R. C. 1939.
1Opinion of the Court
OPINION.
Withey, Judge:
Respondent has determined that the amount received by petitioners from Edward V. Dunklee on January 3,1951, in settlement of their claims against him is taxable to them as ordinary income. Petitioners concede that the $15,000 amount received by them on that date in exchange for the release of their claims against Dunklee is reportable by them, but they contend that it is taxable only as long-term capital gain pursuant to section 117 (a)1 of the Internal Revenue Code of 1939.
Since the taxability of an amount received pursuant to an agreement compromising a contested claim…
2Cases cited12 opinions
- Commissioner of Internal Revenue v. Golonsky. Commissioner of Internal Revenue v. GoldCourt of Appeals for the Third Circuit · 1952
- Commissioner of Internal Revenue v. RayCourt of Appeals for the Fifth Circuit · 1954
- Commissioner of Internal Revenue v. McCue Bros. & Drummond, IncCourt of Appeals for the Second Circuit · 1954
- Golonsky v. CommissionerUnited States Tax Court · 1951
- Swastika Oil & Gas Co. v. Commissioner of Internal Rev.Court of Appeals for the Sixth Circuit · 1941
7 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Ernest J. Saviano and Margaret Saviano v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1985
- Saviano v. CommissionerUnited States Tax Court · 1983
- Old Harbor Native Corp. v. CommissionerUnited States Tax Court · 1995
- Booker v. CommissionerUnited States Tax Court · 1957
- Old Harbor Native Corp. v. CommissionerUnited States Tax Court · 1995
1 more not listed; retrieve them via the Exa API.