Davis v. Comm'r
United States Tax Court
Ps assigned to S their right to receive a portion of each of certain future annual lottery payments in exchange for a lump-sum payment to them by S of $ 1,040,000. Held: S paid Ps a lump-sum amount for the right to receive certain future ordinary income. Held, further, Ps' right to receive certain future annual lottery payments does not constitute a capital asset within the meaning of sec. 1221, I.R.C. Held, further, the $ 1,040,000 that Ps received from S is ordinary income.
1Opinion of the Court
JAMES F. DAVIS AND DOROTHY A. DAVIS, Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Davis v. Comm'r
No. 6389-01
United States Tax Court
119 T.C. 1; 2002 U.S. Tax Ct. LEXIS 38; 119 T.C. No. 1;
July 3, 2002, Filed
Court determined amount that petitioners received in exchange for assignment of right to receive portion of certain future annual lottery payments was ordinary income.
Ps assigned to S their right to receive a portion of each
of certain future annual lottery payments in exchange for a
lump-sum payment to them by S of $ 1,040,000.
Held: S paid Ps a lump-sum amount for the right to
rec…
2Cases cited16 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Hort v. CommissionerSupreme Court of the United States · 1941
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
- Rybak v. CommissionerUnited States Tax Court · 1988
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