Cantor Fitzgerald’s Sept. 11 Relief Grant Deemed Taxable Income

Grant funds given to a unit of New York City-based financial services firm Cantor Fitzgerald LP as part of a post-Sept. 11 recovery program are subject to income tax, the US Tax Court said Tuesday.

The court held CF Headquarters Corp. must include the $3.1 million cash disbursement grant from 2007 in its income after determining it couldn’t be treated as a gift or as disaster aid for tax purposes. But, the court determined the Cantor Fitzgerald subsidiary isn’t liable for about $211,000 in accuracy penalties for failing to do so.

Cantor Fitzgerald had a securities office in the North ...