What was the issue in the tax case Eisner

v.

Macomber?

Why is the case important?

A.

In Eisner v.

Macomber,

the issue was whether welfare benefits were taxable. The Supreme Court sought to define welfare benefits as a gift and therefore are not taxable income.

B.

In Eisner v.

Macomber,

the issue was whether self-help income was taxable. The Supreme Court concluded that income was earned when cash was exchanged.

C.

In Eisner v.

Macomber,

the issue was the taxability of realized income. The Supreme Court determined when income is recognized, which they concluded was after the transfer of title.

D.

In Eisner v.

Macomber,

the issue was whether a stock dividend was taxable. The Supreme Court sought to define income and concluded that realization must occur before income is recognized.