Taxation of Damage Awards and Settlement Payments PDF Download

Author: Robert W. Wood
Publisher: Tax Institute of America
ISBN:
Category : Law
Languages : en
Pages : 518

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Author: Lawrence A. Frolik
Publisher: BNA Books (Bureau of National Affairs)
ISBN:
Category : Business & Economics
Languages : en
Pages : 264

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Book Description
This treatise covers the taxability and deductibility of awards, settlements, and related expenses in personal, property, and business loss tort cases. The changes resulting from the 1986 Tax Reform Act on taxation of losses and recoveries for losses are discussed in detail.

Author: Maughan
Publisher: Bloomsbury Professional
ISBN: 9781845927240
Category : Business & Economics
Languages : en
Pages : 214

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Book Description
"This title is designed as a practical aid to Personal Injury Lawyers in advising their clients on the tax implications of a damages award or settlement. It offers guidance on the sources of tax law and goes into substantial depth on the income tax implications when calculating damages. It also covers CGT and NIC, and concisely explains and illustrates specific tax issues regarding structured settlements, social security benefits, damages for injuries at work and insurance benefits. Aimed at the non-tax specialist this title is written and presented in a user-friendly format, containing many worked examples and calculations. It is an invaluable reference tool for any Personal Injury Lawyer."

Author: Frank J. Doti
Publisher:
ISBN:
Category :
Languages : en
Pages : 24

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Book Description
In the Small Business Job Protection Act of 1996 Congress decided to limit the exclusion for personal injury awards in Internal Revenue Code section 104(a)(2) to any compensatory damages received on account of personal physical injuries or physical sickness. Previously the law did not contain the word quot;physical.quot; Thus, Congress intended to eliminate the benefits of the exclusion for non-physical torts such as employment discrimination and defamation. Unfortunately, neither the law nor legislative history provides sufficient explanation of the meaning of quot;physical.quot; The author discusses the nature of the ambiguities and suggests that the whole purpose of the exclusion is being frustrated because Congress should have focused on what the author calls the quot;human capitalquot; theory of the exclusion. As a result, the author suggests alternatives to the wording of the exclusion to permit non-taxability only to the extent the victim suffered a loss to his/her physical well being including emotional trauma. In the case of damages awarded for loss of earning power, they should, unlike current law, be taxed even in the case where the victim suffered a physical injury or sickness.

Author: Mark Cochran
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
The Omnibus Budget Reconciliation Act of 1989 narrowed the scope of the Internal Revenue Code section 104(a)(2) -- personal injury damages from the recipient's gross income. The Act eliminated the exclusion for punitive damages in connection with a case not involving physical injury or sickness. Moreover, the amendment created a negative presumption that punitive damages received on account of physical injuries are excludable. The amendment compounded the problem of the allocation of recoveries between punitive and compensatory damages in cases involving nonphysical injuries, such as employment discrimination cases (which suffer from the additional complication that an award restoring back pay is taxable as wages). Congress should resolve these ambiguities by either taxing all punitive damages or limiting the exclusion to damages received on account of physical injuries.

Author: Kenneth D. Cooper-Stephenson
Publisher:
ISBN:
Category : Damages
Languages : en
Pages : 828

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Author: Tamara Larre
Publisher:
ISBN:
Category :
Languages : en
Pages :

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Book Description
The tax treatment of personal injury damages has been largely ignored in Canada, despite questionable authority for the generally accepted position that they are not taxable. Courts have reasoned that personal injury damages are not subject to tax because these awards replace lost human capital. However, this explanation became open to question after the introduction of capital gains tax in Canada.The author looks beyond taxation to disability policy in order to validate the tax exemption for personal injury damages. Specifically, the author examines two possible explanations for this tax treatment. According to the humanitarian justification, personal injury damages are not subject to tax because of feelings of pity or sympathy for the injured plaintiff. Commentary to date on the humanitarian justification has not recognized the relevance of disability studies, so a principal focus of this paper is on the contribution of the disability literature to the debate. Considering the disability literature, the author rejects the humanitarian justification by demonstrating that these views reinforce stereotypes and social barriers that actually contribute to disability. The author also examines the tax exemption for personal injury damages as a tax expenditure intended to provide income support for persons with disabilities. Because this program does not account for financial need and is only available to successful tort plaintiffs, the author argues that the program can not achieve an intended goal of advancing full participation in society. In view of the disability literature and government policy statements, neither explanation for the exemption reflects the values of equality, participation and full citizenship that inform disability policy in Canada. Because the tax exemption is not supportable as disability policy, the author advocates for continued debate to identify the appropriate tax treatment of personal injury damages.

Author:
Publisher:
ISBN:
Category : Income tax deductions for medical expenses
Languages : en
Pages : 20

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Author: Jacob A. Stein
Publisher:
ISBN:
Category : Damages
Languages : en
Pages : 1648

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Author: Marc George Van Niekerk
Publisher:
ISBN:
Category : Compensation (Law)
Languages : en
Pages : 100

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Book Description