Yancy D. Greer and Rita K. Greer - Page 6




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          Wesson v. United States, 48 F.3d 894, 898 (5th Cir. 1995); Kovacs              
          v. Commissioner, 100 T.C. 124, 128 (1993), affd. without                       
          published opinion 25 F.3d 1048 (6th Cir. 1994).                                
               Courts have consistently held that prejudgment interest                   
          received on funds awarded for personal injuries does not qualify               
          for the exclusion from income under section 104(a)(2).  See,                   
          e.g., Rozpad v. Commissioner, 154 F.3d 1, 5 (1st Cir. 1998),                   
          affg. T.C. Memo. 1997-528; Aames v. Commissioner, 94 T.C. 189,                 
          192-193 (1990).                                                                
               Under Louisiana law, in order that a plaintiff might be made              
          whole after an injury, courts are required to award prejudgment                
          interest on personal injury damages.  See La. Rev. Stat. Ann.                  
          sec. 13:4203 (West 1999); Lewis v. Macke Bldg. Serv., Inc., 524                
          So.2d 16 (La. Ct. App. 1988); Davis v. Le Blanc, 149 So.2d 252                 
          (La. Ct. App. 1963).                                                           
               Respondent asserts that $143,407 of the total $320,880                    
          petitioner received in connection with her personal injuries                   
          ($17,930 from the Doctor's Insurance and $125,477 from the                     
          State's Insurance) constitutes interest income under section                   
          61(a)(4) and is not excludable from income under section                       
          104(a)(2).                                                                     
               Petitioners assert that the Agreement and the Satisfaction                
          of Judgment documents are evidence of a separate settlement under              
          which the entire $320,880 petitioner received should be treated                






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