capital gain
Litigation Award for Damage to Dairy Farm Ordinary Not Capital
If a dairy farmer receives an award for damages to the farm, is the damage award capital or ordinary? The distinction is important. Unlike ordinary income, capital gains are generally afforded lower tax rates and not subject to self-employment taxes….
Termination Payment for Failed Real Estate Deal Was Ordinary Gain
In CRI-Leslie, LLC v. Commissioner, 147 T.C. 8, the court addressed the tax treatment of a termination payment received from a real estate deal that fell through. The court concluded that the termination payment was ordinary gain, not capital gain, for the taxpayer. This is an important topic and an important case, as this is […]
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