Alice Phelan Sullivan Corp v. US, 381 F.2d 399 (Ct. Cl. 1967)
Nov 11, 2014 by Vahid Dejwakh

Facts and Procedural History

Taxpayer gives property to a charity (on the condition that the charity uses it for religious or educational purpose), and gets a tax deduction. Twenty years later, the charity returns the property to the taxpayer.


When a taxpayer donates a property and gets a deduction, then in a future year receives the same property back, how should taxpayer be taxed?

Holding and Dissent(s)

The value of income to the taxpayer is the amount of the tax deduction from twenty years ago —> this mechanically sets the taxpayer back to same position prior to the gift

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