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in 1989. We disagree. A taxpayer constructively receives income
when he has an unqualified, vested right to receive immediate
payment. Childs v. Commissioner, supra; Martin v. Commissioner,
supra. Petitioner did not accept an offer to buy the right to
receive his future lottery winnings. An unaccepted offer to buy
a future income stream gives a taxpayer no right to the proceeds
from a sale of that income stream. Accordingly, petitioner did
not constructively receive all of his lottery winnings in 1989.
Petitioner contends in his opening brief that Cowden v.
Commissioner, T.C. Memo. 1961-229, and Sainte Claire Corp. v.
Commissioner, T.C. Memo. 1997-171, affd. without published
opinion sub nom. Boccardo v. Commissioner, 164 F.3d 629 (9th Cir.
1998), support his contention that he constructively received all
of the lottery winnings in 1989 when he received offers to buy
the future lottery payments. We disagree. In Cowden, the Court
held that the contract right to deferred bonus payments under an
oil and gas lease was the equivalent of cash and thus taxable as
if cash had been received by the taxpayer because the obligation
of the payor was an unconditional and assignable promise to pay
by a solvent obligor, was of a kind that was frequently
transferred to lenders or investors at a discount not
substantially greater than the generally prevailing premium for
the use of money, and was readily convertible to cash. Cowden is
distinguishable because petitioner did not have the option to
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