Steel v. Commissioner

MEMORANDUM **

Mark and Connie Steel and Odd-Bjorn and Lisa Huse appeal from the Tax Court’s affirmation of Commissioner’s deficiency determination. We have jurisdiction pursuant to 26 U.S.C. § 7482(a), and we affirm.

The Tax Court’s finding that the lawsuit proceeds were not part of the purchase price of BFI’s stock is not clearly erroneous. See Boehm v. Comm’r, 326 U.S. 287, 293, 66 S.Ct. 120, 90 L.Ed. 78 (1945); In re Steen, 509 F.2d 1398, 1402 (9th Cir.1975). As the requirement for capital gains treatment was not met, the proceeds are correctly taxed as ordinary income. See West v. Comm’r,…