In Matter of Malba Cove Properties, Inc., DTA No. 823671 (N.Y.S. Div. of Tax App., May 26, 2011), the taxpayer disputed the imposition of the former real property transfer gains tax (repealed in 1996) on property to which the City of New York took title to in a condemnation proceeding. Although title to the property passed to the City prior to repeal of the tax, the City did not compensate the taxpayer for the property until several years after the gains tax was repealed because of ongoing litigation between the City and the taxpayer regarding who owned the condemned property. The taxpayer asserted that the “disputed income” rule, which prevents the taxation of income in dispute until the taxpayer actually receives such income, prevented application of the gains tax, because no income was received from the condemnation proceedings until after the gains tax was repealed. The ALJ, holding that gains tax was due on the transfer of the condemned property, found that the disputed income rule was applicable to income tax, but not to the gains tax, where the taxable event was the transfer of real property.