Gadlow v. Commissioner
United States Tax Court
In respect of an award of damages for breach of contract, held, G, a cash basis taxpayer, the recipient of the award, must include in his gross income for 1963, the year of receipt, the full amount of the award undiminished by the pertinent legal expenses; held, further, sec. 1305, I.R.C. 1954, must be applied to the full amount of the award, but the pertinent legal expenses, deductible in the year paid, may not be prorated over the earlier years; held, further, G must take…
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In respect of an award of damages for breach of contract, held, G, a cash basis taxpayer, the recipient of the award, must include in his gross income for 1963, the year of receipt, the full amount of the award undiminished by the pertinent legal expenses; held, further, sec. 1305, I.R.C. 1954, must be applied to the full amount of the award, but the pertinent legal expenses, deductible in the year paid, may not be prorated over the earlier years; held, further, G must take into consideration the total amount of the award in computing whether he incurred a net operating loss under sec. 172,…
1Opinion of the Court
Estate of David B. Gadlow, Deceased, Bank of America National Trust & Savings Association, and Margaret B. Graham, Executors, Petitioner v. Commissioner of Internal Revenue, Respondent
Gadlow v. Commissioner
Docket No. 3133-67
United States Tax Court
50 T.C. 975; 1968 U.S. Tax Ct. LEXIS 53;
September 30, 1968, Filed
Decision will be entered for the Commissioner.
In respect of an award of damages for breach of contract, held, G, a cash basis taxpayer, the recipient of the award, must include in his gross income for 1963, the year of receipt, the full amount of the award undiminished by the pertinent…
2Cases cited15 opinions
- Ethel West Cotnam v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Commissioner of Internal Revenue v. SmithCourt of Appeals for the Second Circuit · 1953
- Smith v. CommissionerUnited States Tax Court · 1951
- Cotnam v. CommissionerUnited States Tax Court · 1957
- Moore v. CommissionerCourt of Appeals for the Seventh Circuit · 1941
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