- 5 -
from income pursuant to section 104(a)(2), because the remedies
available include compensatory and punitive damages, as well as
damages for emotional pain, suffering, inconvenience, mental
anguish, loss of enjoyment of life, and other nonpecuniary
losses. 42 U.S.C. sec. 1981a(b) (1994); Phillips v.
Commissioner, T.C. Memo. 1997-336. Petitioner and Mr. Jenkins’
testimony established that Brevard County made the payment to
settle petitioner’s potential ADA claim for wrongful termination.
Petitioner failed, however, to establish that any portion of the
payment was for nonpecuniary damages. See Getty v. Commissioner,
91 T.C. 160, 175-176 (1988), affd. on this issue, revd. on other
issues 913 F.2d 1486 (9th Cir. 1990); Wise v. Commissioner, T.C.
Memo. 1998-4. Accordingly, petitioner is not entitled to exclude
any portion of the settlement. Because petitioner failed to
present any evidence relating to the allocation of the
settlement, we conclude that he had the burden of proof. See
Higbee v. Commissioner, supra at ___ (slip op. at 12).
II. Educational Expenses
Respondent determined that petitioner was not entitled to
deduct the cost of Mrs. Managan’s studies at UCF. Petitioner
contends that this course of study did not prepare Mrs. Managan
for a new trade or business, but it merely allowed her to
maintain and improve her skills, as well as to enhance the
reputation of MRG.
Page: Previous 1 2 3 4 5 6 7 Next
Last modified: May 25, 2011