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Wednesday, March 28, 2007

2d Circuit Joins 3rd, 9th & 10th Circuits: Lump Sum Lottery Payments = Ordinary Income

http://taxprof.typepad.com/taxprof_blog/2007/03/2d_circuit_join.html

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» No Alchemy for Lottery Winnings...Again from Taxable Talk
The 2nd Circuit joined the 3rd, 9th, and 10th Circuit Courts of Appeal today and won't allow a lottery winner to turn ordinary income into a long-term capital gain. We've written about this before (see [Read More]

Tracked on Mar 28, 2007 8:22:49 PM

Comments

Same result if you claim the lottery prize in a partnership, then sell your partnership interest?

Posted by: josh | Mar 28, 2007 9:13:44 PM

The sale of the partnership interest should produce the same result under 751(a), because the lottery payment rights would constitute an inventory item as defined in 751(d)(2).

Posted by: Brant | Mar 29, 2007 10:01:26 AM