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10th Circuit: Sale of Future Lottery Payments Produces Ordinary Income, Not Capital Gain

The Tenth Circuit joined the Third (Lattera v. Commissioner, 437 F.3d 399 (3rd Cir. 2/14/06) and Ninth (United States v. Maginnis, 356 F.3d 1179 (9th Cir. 2004)) Circuits yesterday in holding that the sale of future lottery payments produces ordinary income, not capital gain.  Watkins v. Commissioner, No. 04-9016 (10th Cir. 5/10/06).


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