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OPINION
I. Evidentiary Issue
Petitioners reserved relevance objections to Exhibits 42-R
through 57-R. The exhibits consist of court documents related to
motions to dismiss and for summary judgment filed by the FDIC and
petitioner in petitioner’s lawsuit. Rule 401 of the Federal
Rules of Evidence defines relevant evidence as “evidence having
any tendency to make the existence of any fact that is of
consequence to the determination of the action more probable or
less probable than it would be without the evidence”. In order
to be deemed relevant, proffered evidence need not prove an
ultimate fact in issue; it must only tend to make the existence
of any fact more or less probable. Upon reviewing the exhibits
to which petitioners’ relevance objections are outstanding, we
find those exhibits relevant within the meaning of rule 401, and
thus petitioners’ objections are overruled and the exhibits are
hereby made a part of this record.
II. Section 104(a)(2) Exclusion From Gross Income
Under section 61(a), Congress has provided that gross income
includes all income from whatever source derived unless otherwise
excluded by the Internal Revenue Code. See Commissioner v.
Glenshaw Glass Co., 348 U.S. 426, 429-430 (1955). Pursuant to
section 104(a)(2), gross income does not include “the amount of
any damages received (whether by suit or agreement and whether as
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