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Cowser v. Commissioner, 736 F.2d 1168, 1171-1174 (7th Cir. 1984),
affg. 80 T.C. 783, 787-788 (1983), we fail to appreciate the
unfairness about which petitioner complains. Pursuant to the
divorce decree, $100,000 of the amount awarded to her was to be
paid in installments. Had petitioner received the entire
$100,000 at the time of the divorce and invested the fund in an
interest-bearing account at 9 percent (there is nothing in the
record that suggests that 9 percent was not an appropriate or
fair rate of interest at the time), most likely she would be in
exactly the same posture that she is in as a result of our
holding. Although the question is not before us, we think it
highly unlikely that had petitioner received and deposited the
entire $100,000 in an interest-bearing account, or made some
other type of income-producing investment, the income earned from
the account or investment should be excluded from income merely
because the source of the deposit or investment was a transaction
subject to section 1041.
To reflect the foregoing,
Decision will be
entered for respondent.
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