Estate of Taracido v. Commissioner
United States Tax Court
Decedent's wholly owned corporation, engaged in the international insurance business, sought to treat a payment received in settlement of a lawsuit as gain from the sale or exchange of a capital asset. Held, such amount was paid for the corporation's right to receive present and future commission income as lost profits and is fully includable in gross income pursuant to sec. 61, I.R.C. 1954.
1Opinion of the Court
Forrester, Judge:
Respondent has determined that petitioners are liable as transferees of the assets of Taracido & Co., Inc. (hereinafter TCI), for a Federal income tax deficiency of $68,384.75 for the taxable year ended February 28, 1969. The only issue remaining for our decision is whether an amount received by petitioners in settlement of a lawsuit constitutes gain from the sale or exchange of a capital asset pursuant to section 10011 and section 1221.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
TCI is a corporation organized under the laws of the State of New…
2Cases cited21 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Gregory v. HelveringSupreme Court of the United States · 1935
- Lyeth v. HoeySupreme Court of the United States · 1938
- Raytheon Production Corp. v. Commissioner of Int. Rev.Court of Appeals for the First Circuit · 1944
- MacDonald v. CommissionerUnited States Tax Court · 1944
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3Cited by8 opinions
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- Mandell v. Auditing Division of Utah State Tax CommissionUtah Supreme Court · 2008
- Upchurch v. Comm'rUnited States Tax Court · 2010
- Elliott v. CommissionerUnited States Tax Court · 1987
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