TAX-BENEFIT RULE

tax-benefit rule.The principle that if a taxpayer recovers a loss or expense that was deducted
in a previous year, the recovery must be included in the current year’s gross income to the extent
that it was previously deducted. — Also termed tax-benefit doctrine. [Cases: Internal Revenue
3089, 3138. C.J.S. Internal Revenue § 78.]
[Blacks Law 8th]