Seay v. Commissioner
United States Tax Court
P made claims against his former employer for breach of contract and personal injuries arising out of the termination of his employment. He received $ 105,000 in settlement of his claims. At the time of the settlement, both the attorney for P and the employer's attorney agreed in writing that $ 45,000 had been allocated to the personal injury claim.
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P made claims against his former employer for breach of contract and personal injuries arising out of the termination of his employment. He received $ 105,000 in settlement of his claims. At the time of the settlement, both the attorney for P and the employer's attorney agreed in writing that $ 45,000 had been allocated to the personal injury claim. Held, P has shown that $ 45,000 of the payment was made on account of personal injuries and exempt from taxation under sec. 104(a)(2), I.R.C. 1954.
1Opinion of the Court
Simpson, Judge:
The respondent determined a deficiency of $26,066.60 in the petitioners’ 1966 Federal income tax. The only issue for decision is whether $45,000 of a $105,000 payment, which one of the petitioners received in settlement of claims against his former employer, is excludable from gross income as damages received on account of personal injuries..FINDINGS OP PACT
Some of the facts have been stipulated, and those facts are so found.
The petitioners, Dudley G. Seay and Sybil R.. Seay, are husband and wife and maintained their residence in Minneapolis, Minn., at the time their petition…
2Cases cited12 opinions
- United States v. Safety Car Heating & Lighting Co.Supreme Court of the United States · 1936
- Mason K. Knuckles and Bernice A. Knuckles v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1965
- Schmitz v. CommissionerUnited States Tax Court · 1968
- Harrison E. Spangler and Myrtle B. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
- Anchor Coupling Company, Inc. v. United StatesCourt of Appeals for the Seventh Circuit · 1970
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3Cited by86 opinions
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- Frank E. & Mildred E. Rickel v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1990
- Metzger v. CommissionerUnited States Tax Court · 1987
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