A former Bronx resident who won a $10 million state lottery jackpot payable in 21 installments must pay New York City income taxes on the face value of the prize, even though that is approximately double the amount the State invested to cover the annual payments.
The ruling from the New York State Tax Appeals Tribunal seemingly rejects the usual realization and recognition method of assessing taxable income, and instead adopts a position in which the future value controls.
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