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Old 11-30-2012, 11:52 AM
PapaD PapaD is offline
LawnSite Member
Join Date: Sep 2012
Location: Warrington, PA
Posts: 32
Originally Posted by anyway View Post
here is a question i have not seen on this settlement agreement taxable,will we have to claim this on our taxes??
Comparing this to an auto accident, if someone hits your car and they (or their insurance company) pay you for the damage, that money would not be taxable. However, if they also pay you for your pain and suffering, that part might be considered income and be taxable.

Using that logic, I would think that any payment that is for direct compensation of the damage would not be taxable. The additional 15% for inconvenience, etc. might be taxable. I guess a tax attorney or accountant would be the ones who would know for sure.
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