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petitioners did repay an amount close to the amount CDC deposited
upon execution of the Mutual Release. Petitioners did not have
an unconditional right to retain the deposits. Bourne v.
Commissioner, supra at 649.
The cases that respondent relies on pertain to items that
would normally be included in income upon receipt even though it
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
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