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After reviewing pertinent caselaw, we are not persuaded that
the transfer to Singer involved the sale of a capital asset.
Accordingly, we hold that the lump-sum amount of $1,155,000
received by Mr. Clopton is ordinary income.4
Decision will be entered
under Rule 155.
4We express no opinion whether a purchaser, such as Singer,
of a lottery right from a lottery winner who then sells that
right to a third party would receive ordinary income or capital
gain on that sale. See United States v. Maginnis, 356 F.3d 1179,
1183 n.4 (9th Cir. 2004).
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Last modified: May 25, 2011