Bresler v. Commissioner
United States Tax Court
Best received $ 150,000 in settlement of an antitrust proceeding. Part of the settlement was to compensate Best for the loss incurred in a prior year when it sold its business equipment and reported an ordinary loss. Held, under these circumstances, the gain subsequently recovered is ordinary income. Arrowsmith v. Commissioner, 344 U.S. 6 (1952), applied. Held, further, the remaining proceeds of the settlement allocated among the other claims for damages.
1Opinion of the Court
OPINION
Simpson, Judge:
The Commissioner determined a deficiency in the petitioners’ Federal income tax for the taxable year 1967 of $15,193.96. The principal issue to be decided is whether the portion of the proceeds of a settlement allocable to damages resulting from the sale of poroperty used in a trade or business described in section 1231 of the Internal Revenue Code of 19541 is to be reportéd as ordinary income or long-term capital gain. It is also necessary to decide how the remaining pbrtion of the proceeds of the settlement are to be allocated among other claims for damages.
All of the…
2Cases cited29 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Wichita Term. El. Co. v. Commissioner of Int. R.Court of Appeals for the Tenth Circuit · 1947
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
- United States v. Skelly Oil Co.Supreme Court of the United States · 1969
- United States v. Safety Car Heating & Lighting Co.Supreme Court of the United States · 1936
24 more not listed; retrieve them via the Exa API.
3Cited by42 opinions
- Petzoldt v. CommissionerUnited States Tax Court · 1989
- Grant v. CommissionerUnited States Tax Court · 1985
- Milenbach v. CommissionerUnited States Tax Court · 1996
- Nahey v. CommissionerUnited States Tax Court · 1998
- OKC Corp. v. CommissionerUnited States Tax Court · 1984
37 more not listed; retrieve them via the Exa API.