Desert Palace, Inc. v. Commissioner
United States Tax Court
Held: Receivables arising from the extension of credit for gambling purposes do not represent taxable income until collected. Petitioner's right to collect upon them is subject to the defense of the obligor that the receivables were incurred for gambling purposes.
1Opinion of the Court
Desert Palace, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Desert Palace, Inc. v. Commissioner
Docket No. 8531-74
United States Tax Court
72 T.C. 1033; 1979 U.S. Tax Ct. LEXIS 63;
September 11, 1979, Filed
Held: Receivables arising from the extension of credit for gambling purposes do not represent taxable income until collected. Petitioner's right to collect upon them is subject to the defense of the obligor that the receivables were incurred for gambling purposes.
Robert E. Frisch, David W. Bernstein, and Victor F. Ganzi, for the petitioner.
Lawrence G. Becker, for the…
2Cases cited18 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- West Indies v. First Nat. Bank of NevadaNevada Supreme Court · 1950
- Herberger v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1952
- Barker v. MagruderCourt of Appeals for the D.C. Circuit · 1938
- Evans v. CookNevada Supreme Court · 1876
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