-14-
income tax attributable to the portion of the jury award she
incorrectly excluded from income. Accordingly, we conclude that
the accuracy-related penalty applies to that portion.
V. Whether The Jury Award Is Community Property
We finally consider whether the jury award is community
property under California law, an issue that respondent raised
for the first time after petitioner filed the petition. Married
persons residing in California generally have a one-half interest
in all property acquired during their marriage. Cal. Fam. Code
sec. 760 (West 2004). Spouses residing in California filing
separate returns generally must each report on the returns one-
half of all income the married couple earned during the year.
United States v. Mitchell, 403 U.S. 190, 196-197 (1971).
A legal award is community property if it is in satisfaction
of a personal injury claim and if the cause of action arose
during the marriage. Cal. Fam. Code sec. 780 (West 2006). A
legal award is separate property only if it is in satisfaction of
a personal injury claim and if the cause of action arose after
the spouses were separated or divorced or while they were living
apart. Cal. Fam. Code sec. 781 (West 2006). A personal injury
claim arises from any tortious injury to a protected personal
interest. In re Marriage of Klug, 130 Cal. App. 4th 1389, 1397
n.3 (Ct. App. 2005) (finding legal malpractice a personal injury
claim).
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