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receipt of two additional exhibits. Respondent thereafter filed
an objection to the motion.
OPINION
I. General Rules
A. Federal Taxation Principles
The Internal Revenue Code imposes a Federal tax on the
taxable income of every individual. Sec. 1. Section 61(a)
specifies that gross income for purposes of calculating such
taxable income means “all income from whatever source derived”.
Encompassed within this broad pronouncement are all “undeniable
accessions to wealth, clearly realized, and over which the
taxpayers have complete dominion.” Commissioner v. Glenshaw
Glass Co., 348 U.S. 426, 431 (1955). More particularly, gains
derived from dealings in property, interest, and dividends are
expressly enumerated as falling under the purview of section
61(a). Sec. 61(a)(3), (4), (7).
As a corollary, it is blackletter law that gains derived
from property are taxable to the owner of the property. See,
e.g., Commissioner v. Court Holding Co., 324 U.S. 331, 334
(1945); Salvatore v. Commissioner, 434 F.2d 600, 601-602 (2d Cir.
1970), affg. T.C. Memo. 1970-30; Waltham Netoco Theatres, Inc. v.
Commissioner, 401 F.2d 333, 334-335 (1st Cir. 1968), affg. 49
T.C. 399 (1968); Martin Ice Cream Co. v. Commissioner, 110 T.C.
189, 212-213 (1998); Steubenville Bridge Co. v. Commissioner, 11
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