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evidence. Rule 143(b); Davis v. Commissioner, T.C. Memo. 1997-
80.
Even assuming arguendo that petitioner suffered from a
personal physical injury or physical sickness, the record does
not support the conclusion that petitioner received the $5,000
settlement payment on account of such physical injury or physical
sickness. According to the settlement agreement, petitioner
released “any and all claims” against Morgan Stanley in exchange
for $5,000. The settlement agreement, however, did not
specifically carve out any portion of the settlement payment as a
settlement on account of personal physical injury or physical
sickness, let alone make reference to a physical injury or a
physical sickness resulting from any reputation damage by Morgan
Stanley.
The settlement agreement did not allocate any part of the
settlement payment on account of a personal physical injury or
physical sickness. Furthermore, the evidence in the record does
not support such an allocation. Accordingly, we conclude that no
portion of the $5,000 settlement payment was compensation for a
personal physical injury or physical sickness. Therefore, we
sustain respondent’s determination in this regard.
We have considered all of the other arguments made by the
parties and, to the extent that we have not specifically
addressed them, we conclude they are without merit.
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