United States Supreme Court Cases & Opinions

U.S. Supreme Court

Kieselbach v. Commissioner, 317 U.S. 399 (1943)

Kieselbach v. Commissioner of Internal Revenue

No. 184

Argued December 11, 1942

Decided January 4, 1943

317 U.S. 399

Syllabus

Title to real property in the City of New York was taken by the City, together with the possession and the right to all after-accruing rents, by a proceeding in condemnation under § 976 of the Greater New York Charter. Several months later, the final decree awarded the former owners, as just compensation, the value of the property on the day of taking, with interest thereon from that date till the date of payment.

Held: that the part of the award designated as "interest," although it was part of the "just compensation" that must be paid the owner to justify the taking, was not a part of the sale price of a capital asset under § 117(a) of the Revenue Act of 1936, and was taxable as income under § 22 of that Act. P. 317 U. S. 403.

127 F.2d 359 affirmed.

Page 317 U. S. 400

Certiorari, post, p. 612, to review a judgment which reversed a decision of the Board of Tax Appeals, 44 B.T.A. 279, overruling a deficiency income tax assessment.