Recovery of Capital Doctrine

Recovery of Capital Doctrine

Recovery of Capital Doctrine means:
the doctrine that no income is subject to tax until a taxpayer has recovered any invested capital. For example, a seller of stock can reduce his or her gross receipts (i.e., the selling price) by the adjusted basis of the stock sold. Doyle v. Mitchell Bros. Co., 38 S.Ct. 467 (USSC, 1916).


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