Moments in Tax History | Eisner v. Macomber | Income, an Origin Story

In Eisner v. Macomber, the U.S. Supreme Court ruled that for purposes of the Sixteenth Amendment, “income” was “a gain, a profit, something of exchangeable value proceeding from the property, severed from the capital however invested or employed, and coming in, being ‘derived,’ that is, received or drawn by the recipient (the taxpayer) for his separate use, benefit and disposal.” Macomber introduced the realization requirement to the federal income tax, and the decision continues to be cited in...
By: Freeman Law

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