D. Sam Scheele - Page 10

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             ‘the intent of the payor’ as to the purpose in making the                                            
             payment") (citing Knuckles v. Commissioner, 349 F.2d 610, 612                                        
             (10th Cir. 1965), affg. T.C. Memo. 1964-33);  Metzger v.                                             
             Commissioner, 88 T.C. 834, 847-848 (1987), affd. without                                             
             published opinion 845 F.2d 1013 (3d Cir. 1988).  Nor do we infer                                     
             from the general release included in the settlement agreement                                        
             that any portion of the settlement proceeds constitutes payment                                      
             for personal injury claims not specified in that agreement.  See                                     
             Galligan v. Commissioner, T.C. Memo. 1993-605.                                                       
                    C.  Bargained For Consideration                                                               
                    Petitioner argues alternatively that, even if the settlement                                  
             proceeds per se do not constitute damages on account of personal                                     
             injuries, he received a share of those proceeds by way of the                                        
             option agreement, the Weisel resignation agreement, and the                                          
             Weisel-petitioner sharing agreement (collectively, the pertinent                                     
             agreements) in consideration for his “willingly let[ting] the                                        
             claims for damages to reputation and good will be eliminated in                                      
             the third amended complaint so the settlement could be directed                                      
             toward receipt of insurance proceeds.”                                                               
                    Petitioner has failed to convince us, however, that he                                        
             received the Weisel payment in consideration for giving up                                           
             (settling) any claims for damages on account of personal                                             
             injuries.  None of the pertinent agreements mentions the                                             

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