- 8 -8 trust account in the total amount of $558,438 were made to Weisel in November and December 1989. Payment to Petitioner In November and December 1989, pursuant to the Weisel- petitioner sharing agreement, petitioner received from Weisel payments totaling $279,219 (viz, the Weisel payment). Discussion I. Deficiency A. Introduction We must determine whether the Weisel payment is excludable from gross income pursuant to section 104(a)(2). In pertinent part, section 104(a)(2) provides: “gross income does not include * * * the amount of any damages received (whether by suit or agreement * * * ) on account of personal injuries or sickness”. Petitioner argues that the Weisel payment is a recovery for damage to his professional reputation as a result of the problems arising out of the construction and performance of the cogeneration facility and, thus, is excludable under section 104(a)(2) as damages received on account of personal injuries. Petitioner claims that the Weisel payment was made in liquidation of claims asserted in the first complaint against the S-P parties in the Biomass lawsuit. Respondent argues that the settlement agreement did not settle any claims of personal injury and thatPage: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 Next
Last modified: May 25, 2011