Hudson v. Commissioner
United States Tax Court
Capital Gain -- Ordinary Income -- Section 117 (a) (4). -- Petitioners purchased a judgment from the residuary legatees of an estate; later, petitioners settled the judgment with the judgment debtor. Held, the gain realized by petitioners was not gain realized from the sale or exchange of a capital asset.
1Opinion of the Court
OPINION.
Johnson, Judge:
Simply, the issue is whether the gain realized from the settlement of a judgment is ordinary income or capital gain when the settlement was made between the judgment debtor and the assignee or transferee of a prior judgment creditor. Petitioners contend that they are entitled to the benefits of section 117 (a), Internal Revenue Code, with regard to the gain from the settlement of a judgment. Respondent has determined that the gain is ordinary income and taxable as such. There is no question about the bona fides of the transaction, nor is there any disagreement about the…
2Cases cited12 opinions
- Fairbanks v. United StatesSupreme Court of the United States · 1939
- Commissioner of Internal Revenue v. Golonsky. Commissioner of Internal Revenue v. GoldCourt of Appeals for the Third Circuit · 1952
- Bingham v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1939
- Golonsky v. CommissionerUnited States Tax Court · 1951
- Ray v. CommissionerUnited States Tax Court · 1952
7 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Towers v. CommissionerUnited States Tax Court · 1955
- Christine L. Pounds as Independent of the Estate of Horace E. Pounds and Christine L. Pounds v. United StatesCourt of Appeals for the Fifth Circuit · 1967
- Nahey v. CommissionerUnited States Tax Court · 1998
- Peggy Hudson Ogilvie, Admx. v. Commissioner of Internal Revenue, Hillsman Taylor v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1954
- Gladden v. Comm'rUnited States Tax Court · 1999
14 more not listed; retrieve them via the Exa API.