This website uses cookies to ensure you have the best experience. Learn more

Lover Taxes Essay

617 words - 3 pages

Standard Federal Tax Reporter (2007), .04, Compensation for Injuries or Sickness: Damages for Physical Personal Injuries or Sickness: Damages for physical personal injuries or sickness
Click to open document in a browser The amount of any damages received on account of physical personal injuries or sickness are excludable from gross income (Code Sec. 104(a)(2)). The word "damages" includes not only amounts awarded by a court in a lawsuit; it also includes amounts received as the result of an agreement in settlement of a suit (Code Sec. 104(a)(2)). This exclusion is subject to the exception for previously reimbursed medical expenses (¶6662.021). The exclusion is not available in the case of damages awarded to a corporation, because a corporation cannot sustain "personal" injuries (P & X Markets, Inc., 106 TC 441, Dec. 51,400. Aff'd, CA-9 (unpublished opinion), 98-2 USTC ¶50,613; ¶6662.523). Damages ...view middle of the document...

Damages for emotional distress (including the physical symptoms of emotional distress) may not be treated as damages on account of a personal physical injury or sickness, except to the extent of an amount paid for medical care attributable to emotional distress. However, damages for emotional distress and other nonphysical injuries or sickness remain excludable to the extent attributable to a physical injury or sickness (Code Sec. 104(a)). Under the former version of the statute, as in effect before Aug. 21, 1996, back pay received to satisfy an employment discrimination claim was not excludable; however, damages received for emotional distress were excludable because they were received on account of personal injuries or sickness (Rev. Rul. 96-65, 1996-2 CB 6, at ¶6662.528). EXAMPLE Mike and Sherry Evans are in a traffic accident in which their car is struck from behind. Mike's injuries incapacitate him for many months. They successfully pursue a legal claim and Mike recovers damages for his physical injuries, medical costs, emotional distress, and loss of consortium with Sherry. Because the emotional distress damages awarded to Mike were on account of his physical injuries, all of the damage awards are excludable from income (see Code Sec. 104(a); ¶6660.137). Act Sec. 1529 of the Taxpayer Relief Act of 1997 (P.L. 105-34) contains special rules which treat disability payments received in 1989, 1990, and 1991 by certain police and firemen suffering from heart disease or hypertension as excludable under Code Sec. 104(a)(1). For the specific requirements to qualify under this section, see the amendment notes in the Code Volumes. Where a taxpayer has received a damage award or settlement for nonphysical injuries or emotional distress, attorney's fees paid in the form of contingency fees are also not excludable from the income of the damaged party. The Supreme Court has held that contingency fees are includable in the taxpayer's income if the award amount is also included in the taxpayer's income. (J.W. Banks,SCt, 2005-1 USTC ¶50,155, at ¶6662.515)

©2013 Wolters Kluwer. All rights reserved.

Other Papers Like Lover Taxes

A Rose for Emily Essay

819 words - 4 pages , and her lover. At the end of the story we find out t the disturbing truth that Emily was hiding. The street that Emily lived became to be the worst street, for it had decayed and gotten old the same as Emily. The old ways of the town changed and was now decayed and past on just as Emily and her father. The house she lived was once beautiful now it was an eye sore for the town. As Emily aged so did the house. Once when the house and yard began to

Discuss the Impact That Different Leadership Styles May Have on Motivation in Organizations in Periods of Change

2054 words - 9 pages challenging to help consider holidays or even day off regardless of whether these are generally ill. For example plumbers, hairdressers or photographers are usually individual traders. (1) b) Partnership firm A new joint venture is a small business thing acquiring a couple of owners. Revenue are dispersed using the joint venture understanding and so are cared for while individual earnings intended for taxes requirements. As a

The Flowers

1247 words - 5 pages her town with the duty of not paying her taxes. Miss Emily here is describing in a monstrous appearance. "She looked bloated, like a body long submerged in motionless water". It's a description of some being left behind. No one cares.Section two . Mentioned Mr. Grison's death and her later on sweetheart. There's a decision made by a Judge "Stevens" on her behalf, he didn't want the neighbors to confront her just because the small that is coming

Shawshank Redemption

1343 words - 6 pages establishes himself amongst the prison employees as an intelligent and resourceful individual who could in fact benefit their lives outside of prison life. Dufresne, who was wrongly accused of killing his wife and her lover, introduces his accounting skills to the prison guards in an intense argument where Dufresene, without provocation, initiates a conversation with a guard to inform him of how he can avoid paying taxes on a lump sum of money he will be

Do We Really Love Our Animals?

2660 words - 11 pages Do you consider yourself a pet lover? Do you love animals in general? Can you imagine yourself as a little boy in a trailer far away from the depths of socialization? Once upon a time there was this boy, and this boy had a friend. No matter how hard times got he had Bo. The boy was incredibly happy because he had always dreamed of having a dog like that, a companion. Then your friend dies and you are left standing. Can you imagine the pain

Henry VIII And His Contribution To The English Reformation

1628 words - 7 pages securely upon his head. Once in power, he took a different approach to governing than that of his father's steadfast and stolid ruling techniques. His father's primary concerns had been to control the independence of nobility and to enrich the crown. In contrast, his son Henry VIII set out to expand England's power in Europe. In order to ease the immense discontent caused by his father's inflation of taxes and avoidance of expensive wars, Henry placed

Life And Times Of Louis Xiv

3475 words - 14 pages Mazarin, the prime minister, to fulfill the role of king. Jules Marazin had been a confidential assistant to Richelieu. As the old statesman neared his end, he still wielded enough influence to have Marazin installed as successor. (Aspler 25). Marazin was also the lover of Anne of Austria. When Louis became the king at the age of five, Mazarin took the opportunity to rule France in his name. He was very unpopular. The peasants hated him because they

Tata Sky- Dth

3105 words - 13 pages 5 Targeting 5 Positioning 5 SWOT Analysis 6 Field Study and Survey 6 Online Survey and Results: 7 Marketing Mix 8 Product: 8 Price: 8 Promotion: 8 Place: 8 Conclusion 8 References 8 I. Introduction What is the very first thing or imagery that comes to our mind when we say the acronym DTH? Maybe we visualize Shahrukh Khan in his signature lover-boy arms-wide-spread pose urging us to wish for more (Dish Karo, Wish Karo


4272 words - 18 pages was registration of around 120 million subscribers but this rising pace was reduced in the year 2013, mainly because of the heavy taxes levied by the government. The industry registered a total mobile subscriber base of 122.127 mn in March 2013, which was the strongest net addition since November 2012. According to a report by Business Monitor International, a London based research firm, there will be an expected annual growth rate of about 13.3

Urban Sprawl

2914 words - 12 pages means that growth in the suburbs is often out of control; there is no regulating body to oversee what is taking place. One of the difficulties is the bias that favors those who profit from sprawl, such as the land developers. They offer more revenues to be brought to the municipalities through taxes, etc. So, they are even encouraged for the most part to continue their development. With all of the “planning,” with the last two decades

Business Plan Hothands

4035 words - 17 pages 30 million foreign visitors, and also is the most visited city in the world. The public transport including Metro, buses and trains to help you move around the city with ease and visitors or residents could reach ski resorts from Paris railway station. For these visitors and outdoors lover, body warmer is the best choice for them to against cold weather in the easiest way. We will sell our product in the convenience stores, supermarkets, public

Related Essays

Literature Comparison Essay

1829 words - 8 pages Monty Miller Literature Comparison Robert Browning's poems “Porphyria's Lover” and William Faulkner’s story “A Rose for Emily” are stories of where the characters Emily Grierson (“A Rose for Emily”) and Porphyria’s lover ('Porphyria's Lover') are so insanely in love to the point they cannot live without the one they feel so strongly for, which drives them to insanity and murder. Emily Grierson and Porphyria’s lovers insanity are brought on

A Rose For Emily Essay

865 words - 4 pages Emily in my opinion was a very troubled lady. All of her problems started the day her father died and it just went downhill from there. In my opinion she just couldn't cope with it. Throughout the story, Emily did a lot of things that were questionable like refusing to pay her taxes, buying poison and the death of her lover that allowed the town to believe that she was stubborn and crazy old woman.

"A Rose For Emily" Characterisation Essay

612 words - 3 pages of the account. In an effort to create empathy for Emily, she is described through the eyes of the townspeople who although gossip about her also refer to her as "poor Emily". Poor Emily is left a poor spinster by her harsh father, deserted by her suitor, and humiliated by her homosexual lover. There are personal accounts of her father's funeral, the suitors that were chased away, the china painting classes and steadfast refusal to pay taxes. The

The Image Of Women In The Eightieth

1347 words - 6 pages Emily is not one of them and thus it's easier for them to put her aside and ignore her. In addition because of her father's ideas, she always thought she was someone special better than the rest of the rest of the people in town, and that is the reason why she never got married. Thus her father is the only one that can take care and protect her. There are two people that have the most influenced to Emily's life were her father and her lover