|ROGER LESLIE WOLMAN;
CAROLINE R. WOLMAN,
COMMISSIONER OF INTERNAL REVENUE,
On appeal, the Wolmans continue to argue that the money received from Capital First Financing in 1998 and 1999 was long term capital gain and not ordinary income. This court recently considered and rejected this argument in a case presenting very similar facts. See Watkins v. Comm'r, No. 04-9016, ___ F.3d ___, 2006 WL 1266530 (10th Cir. May 10, 2006). For the same reasons stated in Watkins, we reject the Wolmans' argument and hold that the lump sum payments were taxable as ordinary income.
The Wolmans also argue that Mr. Wolman made a capital investment in lottery tickets in excess of $4000 from January 28, 1989 through April 2, 1994. They contend that this "investment" makes the right to the lottery installment payments a capital asset. We reject this argument. The purchase of lottery tickets is not an underlying investment of capital. See Watkins, 2006 WL 1266530, at *3 n.4. Also, neither Mr. Wolman's purchase of a computer, printer, and a lottery computer program nor the time he spent making his lottery picks were capital investments.
Accordingly, we AFFIRM the judgment of the Tax Court.
Entered for the Court
Stephen H. Anderson
*. After examining the briefs and appellate record, this panel has determined unanimously that oral argument would not materially assist the determination of this appeal. See Fed. R. App. P. 34(a)(2); 10th Cir. R. 34.1(G). The case is therefore ordered submitted without oral argument. This order and judgment is not binding precedent, except under the doctrines of law of the case, res judicata, and collateral estoppel. The court generally disfavors the citation of orders and judgments; nevertheless, an order and judgment may be cited under the terms and conditions of 10th Cir. R. 36.3.