Dan C. and Cassandra T. Williams - Page 3

                                        - 3 -                                         
          with the settlement agreement and deposited them into his trust             
          account.  During 1998 and 1999, he issued checks to petitioners             
          in the amounts of $143,356 and $150,000, respectively.  These               
          payments consisted of the settlement payments net of attorney               
          fees and costs.  Accordingly, petitioners received net settlement           
          proceeds of $293,356.  Petitioners did not report the settlement            
          proceeds on their 1998 or 1999 Federal income tax returns.                  
          Discussion                                                                  
               The parties stipulated that petitioners may not exclude any            
          portion of the settlement from gross income under section 104 and           
          that petitioners* net receipts of $293,356 are includable in                
          gross income under section 61(a).  The sole issue remaining in              
          dispute is whether that portion of the settlement representing              
          the attorney*s contingency fee of $206,644 should be included in            
          petitioners* gross income for their 1998 and 1999 tax years.                
               Summary judgment is intended to expedite litigation and                
          avoid unnecessary trials.  Fla. Peach Corp. v. Commissioner, 90             
          T.C. 678, 681 (1988).  A motion for summary judgment may be                 
          granted if there is no genuine issue as to any material fact.               
          See Rule 121(b); Elec. Arts, Inc. v. Commissioner, 118 T.C. 226,            
          238 (2002).  The moving party bears the burden of showing that              
          there is no genuine issue of material fact, and factual                     
          inferences will be read in a manner most favorable to the party             
          opposing summary judgment.  Bond v. Commissioner, 100 T.C. 32, 36           






Page:  Previous  1  2  3  4  5  6  7  Next

Last modified: May 25, 2011