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may be determined at a future date that they are not to be
retained. E.g., Healy v. Commissioner, 345 U.S. 278 (1953)
(salary); United States v. Lewis, 340 U.S. 590 (1951) (bonus from
employer); Hirsch Improvement Co. v. Commissioner, 143 F.2d 912
(2d Cir. 1944) (advance payments of rent); Nordberg v.
Commissioner, 79 T.C. 655 (1982) (corporate distribution), affd.
without published opinion 720 F.2d 658 (1st Cir. 1983); Hope v.
Commissioner, 55 T.C. 1020 (1971) (sale of stock), affd. 471 F.2d
738 (3d Cir. 1973); Angelus Funeral Home v. Commissioner, 47 T.C.
391 (1967) (prepaid services), affd. 407 F.2d 210 (9th Cir.
1969); Goldberg v. Commissioner, T.C. Memo. 1997-74 (advance
payment for sale of goods); Alexander Shokai, Inc. v.
Commissioner, T.C. Memo. 1992-41 (commissions), affd. 34 F.3d
1480 (9th Cir. 1994); Rosenberg v. Commissioner, T.C. Memo. 1956-
68 (legal fees).
Accordingly, we hold that the claim of right doctrine does
not apply to the case at hand. Therefore, the deposits that
petitioners received are not included in income in the year
received, but in the year the right to retain them is fixed.
Since the determination of petitioners’ rights to the deposits
did not occur in 1989, 1990, or 1991, the years before this
Court, the amounts are not included in petitioners’ gross income
for those years.
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