- 8 -
(C) a taxpayer in whose hands the basis
of such property is determined, for purposes
of determining gain from a sale or exchange,
in whole or part by reference to the basis of
such property in the hands of a taxpayer
described in subparagraph (A) or (B);
(4) accounts or notes receivable acquired in
the ordinary course of trade or business for ser-
vices rendered or from the sale of property de-
scribed in paragraph (1);
(5) a publication of the United States Gov-
ernment (including the Congressional Record) which
is received from the United States Government or
any agency thereof, other than by purchase at the
price at which it is offered for sale to the pub-
lic, and which is held by--
(A) a taxpayer who so received such
publication, or
(B) a taxpayer in whose hands the basis
of such publication is determined, for pur-
poses of determining gain from a sale or
exchange, in whole or in part by reference to
the basis of such publication in the hands of
a taxpayer described in subparagraph (A).
Petitioners6 contend that their right to receive future
annual lottery payments constitutes property held by them and
that such property meets the definition of the term “capital
asset” in section 1221. Respondent acknowledges that petition-
ers’ right to receive future annual lottery payments is property
in the ordinary sense of the word. However, respondent contends
that such right does not qualify as a capital asset within the
meaning of section 1221. According to respondent, the $1,040,000
6The parties agree that at all relevant times petitioners
were cash basis taxpayers.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011