Roemer v. Commissioner
United States Tax Court
P, an insurance broker, received a jury award of $ 40,000 for compensatory damages and $ 250,000 for punitive damages arising out of a libel suit.
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P, an insurance broker, received a jury award of $ 40,000 for compensatory damages and $ 250,000 for punitive damages arising out of a libel suit. Held: 1. P has failed to prove that the compensatory damages were received on account of personal injuries and excludable from his gross income under section 104(a)(2), I.R.C. 1954, because the damages were primarily to his professional and business reputation. 2. The punitive damages are not excludable under section 104(a)(2) from petitioner's gross income. 3. Both the compensatory and punitive damages are taxable as ordinary income. 4. The issue…
1Opinion of the Court
Dawson, Judge:
Respondent has determined a deficiency of $32,908 in petitioners’ Federal income tax for the year 1975.
Concessions have been made by the parties. The issues presented for decision are:
1. Whether petitioner Paul F. Roemer, Jr., is entitled under section 104(a)(2)1 to exclude from his gross income for 1975 compensatory damages of $40,000 received as a result of a favorable jury verdict in a libel suit.
2. Whether punitive damages of $250,000 in the same libel suit are likewise excludable from petitioner’s gross income as having been received on account of personal injuries.
3. If…
2Cases cited20 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- United States v. GilmoreSupreme Court of the United States · 1963
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Seay v. CommissionerUnited States Tax Court · 1972
15 more not listed; retrieve them via the Exa API.
3Cited by63 opinions
- Foster v. Comm'rUnited States Tax Court · 1983
- Threlkeld v. CommissionerUnited States Tax Court · 1986
- Paul F. Roemer, Jr. And Marcia E. Roemer v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1983
- Metzger v. CommissionerUnited States Tax Court · 1987
- Fono v. CommissionerUnited States Tax Court · 1982
58 more not listed; retrieve them via the Exa API.