The taxpayers, owners of two movie theatres, recovered $36,000 in a compromise settlement of a Clayton Act suit against the major distributors and exhibitors. The taxpayers claimed that the amount received was a return of capital. The Commissioner claimed the amount received represented the recovery of lost profits. Held, Commissioner upheld. The evidence presented did not warrant a finding that any part of the sum recovered represented a return of capital. Chalmers Cullins, 24 T.C. 322 (1955).
Eric Bergsten S.Ed.,
Taxation - Federal Income Tax - Damages for Injury to Business as Return of Capital or Income,
Mich. L. Rev.
Available at: https://repository.law.umich.edu/mlr/vol54/iss6/17