Opinion ID: 214967
Heading Depth: 2
Heading Rank: 4

Heading: The District Court Grants the Government's Motion for Summary Judgment

Text: The district court granted the government's motion for summary judgment and awarded it the disputed amount. United States v. Fort, No. 1:08-CV-3885-TWT, 2010 WL 2104671, at  (N.D.Ga. May 20, 2010). The court stated that taxable income during a given taxable year includes all income from whatever source derived that is actually or constructively received during that year. Id. at  (citing 26 U.S.C. § 61(a)(3); 26 C.F.R. § 1.61-2(a)). While the court assumed that Fort did not actually receive the Restricted Shares, it concluded that he constructively received them, because: He alone stood to gain or lose money based on the stock's performance. He received the benefit of the dividends paid on the shares, and he had the right to direct how the shares would be voted. Moreover, he knowingly agreed to the sale restriction and the forfeiture provision. He also agreed to the amount of the discount. Id. at . The district court also rejected Fort's argument that the forfeiture provision prevented him from constructively receiving the Restricted Shares in 2000. The court explained that the fact that the partners risked having to return some of their shares at a later time does not mean that they did not constructively receive the shares in the first place. Id. Subsequently, Fort filed a timely appeal to this court.