Brabson v. United States

MEMORANDUM OPINION AND ORDER

KANE, Senior District Judge.

Before me on defendant United States’ motion to dismiss is the complex question of what constitutes “damages received on account of personal injuries or sickness” under the exclusion from gross income stated in Internal Revenue Code § 104(a)(2). In particular I must determine whether mandatory statutory prejudgment interest, added by operation of law to Colorado personal injury awards under C.R.S. § 13-21-101(1), is an element of “damages” excludable from in come within the meaning of § 104(a)(2) or whether it is taxable “interest”…