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Legaltaxation

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legaltaxation2 years ago

Rudy Giuliani's $148M Verdict: Tax Implications and Next Steps

Rudy Giuliani has been ordered to pay nearly $150 million in damages for defamation to former Georgia election workers, but he may be able to write off the verdict as a business expense if he was acting as a lawyer for former President Trump at the time. In contrast, the plaintiffs will have to pay taxes on the entire amount, including funds going to their lawyers. Punitive damages are taxable ordinary income, even for emotional distress cases, while recoveries for physical injuries are tax-free. The tax rules surrounding damages can be complex, with many judgment calls, and plaintiffs often have to get creative to deduct their legal fees.

via Forbes|
#defamation#lawsuit#legaltaxation
legaltaxation2 years ago

Rudy Giuliani's $148 Million Verdict: Tax Write-Offs and Plaintiff's Burden

Rudy Giuliani has been ordered to pay nearly $150 million in damages for defamation to former Georgia election workers, but he may be able to write off the verdict as a business expense if he was acting as a lawyer for former President Trump at the time. In contrast, the plaintiffs will have to pay taxes on the entire amount, including funds going to their lawyers. Punitive damages are taxable ordinary income, even for emotional distress cases, while recoveries for physical injuries are tax-free. The complex tax rules surrounding damages and settlements can lead to mismatches and disputes, with plaintiffs often having to pay taxes on monies their attorneys collect.

via Forbes|
#defamation#lawsuit#legaltaxation
legaltaxation2 years ago

Supreme Court Dispute: $15,000 IRS Bill Targets Never-Enacted Billionaire Tax

The Supreme Court is set to hear a case brought by Charles and Kathleen Moore, who argue that a $15,000 tax bill they received is unconstitutional. The case challenges a provision in the 2017 tax bill that imposes a one-time tax on American-owned companies doing business abroad. The Moores, backed by business and conservative interests, claim the provision violates the 16th Amendment. However, public records suggest inconsistencies in their story, including their involvement with the company and undisclosed investments. Experts suspect the case may be aimed at challenging a potential wealth tax on billionaires. The outcome could have broader implications for the tax code and other business formations.

via ABC News|
#constitutional-challenge#lawsuit#legaltaxation