skip to main content
Language:
Search Limited to: Search Limited to: Resource type Show Results with: Show Results with: Search type Index

Lottery Winnings as Capital Gains

The Yale law journal, 2004-10, Vol.114 (1), p.195-202

Copyright 2004 The Yale Law Journal Company, Inc ;COPYRIGHT 2004 Yale University, School of Law ;Copyright Yale Law Journal Company, Inc. Oct 2004 ;ISSN: 0044-0094 ;EISSN: 1939-8611 ;DOI: 10.2307/4135719

Full text available

Citations Cited by
  • Title:
    Lottery Winnings as Capital Gains
  • Author: Levine, Matthew S.
  • Subjects: Capital assets ; Capital gains ; Capital income ; Capital investments ; Capital losses ; Case Comment ; Case notes ; Income tax ; Income taxes ; Leases ; Litigation ; Lotteries ; Lottery winners ; Lump sum ; Ordinary income ; Tax payments ; Tax refunds ; Taxpaying
  • Is Part Of: The Yale law journal, 2004-10, Vol.114 (1), p.195-202
  • Description: In 1991, J Michael Maginnis had the misfortune to win $9 million in the lottery. Five years later, he sold his remaining winnings to Woodbridge Financial Corporation for a $3.95 million lump sum. He reported this payment on his tax return as ordinary income, but he changed his mind several years later and sought a refund of some $305,000, claiming that the lottery payment was a capital gain. The IRS agreed and refunded his money. Then the IRS had its own change of heart and sued Maginnis, claiming that the refund was erroneous. An Oregon district court agreed with the Service, the Ninth Circuit affirmed, and Maginnis had to return his refund. Judge Fisher's opinion for the Ninth Circuit, which sets out a two-factor test for whether a gain is ordinary income under the "substitute for ordinary income" doctrine, is problematic. This Comment argues that an alternative approach that analyzes the transaction by which Maginnis received his lottery right may better explain and confine the use of the notoriously murky "substitute for ordinary income" doctrine.
  • Publisher: New Haven: The Yale Law Journal Company
  • Language: English
  • Identifier: ISSN: 0044-0094
    EISSN: 1939-8611
    DOI: 10.2307/4135719
  • Source: AUTh Library subscriptions: ProQuest Central
    Free E Journals
Back to results list
INSPIRE LIBRARY - TON DUC THANG UNIVERSITY (84-028) 37 755 057 Feedback
19 Nguyen Huu Tho St. Dist.7, HCM thuvien@tdtu.edu.vn

Copyright © 2017 INSPIRE LIBRARY - TON DUC THANG UNIVERSITY

Searching Remote Databases, Please Wait