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Submitted By: someone
Answered: June 1, 2022 2:45 am
Answered: June 1, 2022 2:45 am
I received a wrongful death settlement following the death of my relative. Is this taxable to me or to her estate?
A wrongful death settlement of compensatory damages is nontaxable because it is the result of a claim arising from personal physical injury or illness. However, if the settlement includes punitive damages and/or interest, that portion of the settlement is taxable.
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Tax Glossary
Amount realized
A statutory term used to figure your profit or loss on a sale or exchange. Generally, it is sales proceeds plus mortgages assumed or taken subject to, less transaction expenses, such as commissions and legal costs.
