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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 services rendered or from the
sale of property described in paragraph (1);
(5) a publication of the United States
Government (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 public, 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 purposes 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).
Petitioners contend that (1) the Court wrongly decided Davis
v. Commissioner, 119 T.C. 1 (2002), (2) a lottery ticket falls
within the definition of a capital asset, and (3)
characterization of a lottery ticket and the resultant prize
as a capital asset does not frustrate congressional intent.
Davis involved the same issue and nearly identical facts.
The taxpayers in Davis won a California State lottery prize and
subsequently assigned a portion of future annual lottery payments
to Singer in exchange for a lump-sum payment. Id. at 3. We held
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Last modified: May 25, 2011