Commissioner of Internal Revenue v. Caulkins

ALLEN, Circuit Judge.

This case arises upon petition to review a decision of the Tax Court of the United States (1 T.C. 656), which sustained the taxpayer in reporting an increment received within the taxable year 1939 as a capital gain. The primary question is whether the excess amount received by the taxpayer over the aggregate payment made by him under a contract with Investors Syndicate constitutes ordinary income or capital gain.

The taxpayer in 1928 purchased an “Accumulative Installment Certificate” under the terms of which Investors Syndicate agreed to pay him $20,000 at the expiration…