Maryland Jockey Club of Baltimore City, a Maryland Corporation v. United States

The question is whether certain receipts from the Maryland Racing Commission, paid out of its “Racing Fund” were taxable income to the taxpayer or capital contributions not subject to federal income tax. A similar question involving disbursements to the same taxpayer by the Maryland Racing Commission under an earlier statute of that state was determined by this Court in United States v. Maryland Jockey Club, 4 Cir., 210 F.2d 367, in which it was held that the receipts were a return to the taxpayer of moneys in which it had an equitable interest and which had been generated by its own…