- 53 -                                         
          the defamation agreement was a cash equivalent--i.e., that it was           
          assignable or contained a promise to pay that was frequently                
          transferred to lenders or investors at not substantially greater            
          than the generally prevailing premium for the use of money.                 
          Cowden v. Commissioner, 289 F.2d 20 (5th Cir. 1961), revg. 32               
          T.C. 853 (1959).  We also note that UTA was unwilling to pay the            
          entire $4 million as a lump sum “up front”.  See Jombo v.                   
          Commissioner, T.C. Memo. 2002-273.                                          
               2.   Constitutionality of Section 104                                  
               Petitioner’s second argument is that post-SBJPA section 104            
          is unconstitutional because it is retroactive and violates due              
          process.                                                                    
               Post-SBJPA section 104 is not retroactive.  Venable v.                 
          Commissioner, T.C. Memo. 2003-240 n.1.  SBJPA section 1605(d)(1)            
          provides that the amendments made by SBJPA section 1605 shall               
          apply to amounts received after the date of the enactment of the            
          SBJPA, in taxable years ending after such date.  SBJPA section              
          1605(d)(2) provided an exception to this rule for amounts                   
          received under a written binding agreement, court decree, or                
          mediation award in effect (or issued on or before) September 13,            
          1995.  Accordingly, post-SBJPA section 104 applies only to                  
          amounts received after its effective date; it does not affect the           
               29(...continued)                                                       
          the settlement agreements.                                                  
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