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Financial Planning / Tax Strategies


Subject:  Re: Question for the board Date:  8/11/2004  8:43 PM
Author:  Fletch52 Number:  72813 of 124776

Generally an award from a lawsuit is taxable if it replaces taxable income. Therefore a lawsuit to replace lost income is taxable. An award for punitive damages is also taxable income. Awards for property damage, consumer claims or physical injury are not taxable. The legal costs are generally deductible against the income if they were paid to help collect or produce the income.

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