Kovacs v. Commissioner
United States Tax Court
Ps were awarded damages of $ 995,000 in a Michigan wrongful death action and D appealed. After exhausting its appeals, D paid Ps $ 2,254,741.70, which was the sum of the damages, $ 6,134.53 in costs, and $ 1,253,607.17 in statutory interest.
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Ps were awarded damages of $ 995,000 in a Michigan wrongful death action and D appealed. After exhausting its appeals, D paid Ps $ 2,254,741.70, which was the sum of the damages, $ 6,134.53 in costs, and $ 1,253,607.17 in statutory interest. Held: Sec. 104(a)(2), I.R.C., excludes from gross income "damages received * * * on account of personal injuries". Statutorily imposed "interest" on damages is not included within the exclusionary terms of sec. 104(a)(2). Ps may not exclude the portion of the payment representing interest. Held further: Ps may deduct the portion of their attorney's fees…
1Opinion of the Court
ROSEMARY S. KOVACS, ET AL., 1 Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Kovacs v. Commissioner
Docket Nos. 5617-90, 5619-90, 5618-90, 5620-90
United States Tax Court
100 T.C. 124; 1993 U.S. Tax Ct. LEXIS 10; 100 T.C. No. 10;
February 24, 1993, Filed
Decisions will be entered for respondent as to the deficiencies in tax and for petitioners as to the addition to tax.
Ps were awarded damages of $ 995,000 in a Michigan wrongful death action and D appealed. After exhausting its appeals, D paid Ps $ 2,254,741.70, which was the sum of the damages, $ 6,134.53 in costs, and $ 1,253,607.17…
Also in this document: Dissent · Chabot; Dissent · Halpern; Dissent · Beghe.
2Cases cited78 opinions
- Albemarle Paper Co. v. MoodySupreme Court of the United States · 1975
- Cannon v. University of ChicagoSupreme Court of the United States · 1979
- Snyder v. MassachusettsSupreme Court of the United States · 1934
- Planned Parenthood of Southeastern Pa. v. CaseySupreme Court of the United States · 1992
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
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