Thorpe v. Commissioner

SPENCER THORPE, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

Thorpe v. Commissioner

Docket No. 97266.

United States Board of Tax Appeals

42 B.T.A. 654; 1940 BTA LEXIS 972;

August 29, 1940, Promulgated

In 1935 the petitioner received $35,000 from his lessee for breach of covenant of a lease entered into in 1924. Held, that the amount received was not from the sale or exchange of a capital asset and that the petitioner is taxable upon the entire amount as ordinary income.

A. Calder Mackay, Esq., for petitioner.

Byron M. Coon, Esq., and R. T. Miller, Esq., for the respondent.

SMITH

This…