This case is before us on respondent's motion for summary judgment under Rule 121.2 The issue for consideration is whether petitioners may exclude from gross income, under section 104(a)(2), amounts received from Robert C. Sodoma's employer in consideration for signing a general release and covenant not to sue agreement. The disposition of a motion for summary judgment under Rule 121 is controlled by the following principles: (1) The moving party must show the absence of dispute as to any material fact and that a decision may be rendered as a matter of law; (2) the factual materials and the inferences to be drawn from them must be viewed in the light most favorable to the party opposing the motion; (3) the party opposing the motion cannot rest upon mere allegations or denials, but must set forth specific facts showing there is a genuine issue for trial. Rule 121; Brotman v. Commissioner, 105 T.C. 141 (1995). Respondent's motion is based on a stipulation of facts and attached exhibits which are incorporated herein by this reference. At the time the petition was filed, petitioners resided in Austin, Texas. Prior to and during a portion of 1993, Mr. Sodoma was employed by the International Business Machines Corporation 2 Unless otherwise indicated, all statutory references are to the Internal Revenue Code in effect for the year in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 Next
Last modified: May 25, 2011