Horton v. Commissioner
United States Tax Court
Ps sustained personal injury when their home was destroyed by a gas explosion and fire caused by U's negligence. Ps sued U in Kentucky State court and were awarded compensatory damages plus punitive damages in the amount of $ 500,000. Held, the punitive damages received by Ps are excludable from gross income under sec. 104(a)(2), I.R.C., as "damages received * * * on account of personal injuries".
1Opinion of the Court
OPINION
Ruwe, Judge:
Respondent determined a deficiency of $130,850 in petitioners’ 1985 Federal income tax. After concessions, the only issue for decision is whether section 104(a)(2)1 allows petitioners to exclude an award of punitive damages from taxable income.
This case was submitted fully stipulated pursuant to Rule 122(a). The stipulation of facts and attached exhibits are incorporated heroin by this reference.
Petitioners resided in Florence, Kentucky, when they filed their petition in this case.
On December 1, 1981, a Boone County circuit court jury found Union Light, Heat & Power Co.…
2Cases cited19 opinions
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- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Crane v. CommissionerSupreme Court of the United States · 1947
- United States v. CorrellSupreme Court of the United States · 1967
- United States v. BurkeSupreme Court of the United States · 1992
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- Downey v. Comm'rUnited States Tax Court · 1993
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