Nicholas Sandman has settled with NBC for an undisclosed amount per his own tweet
(mobile.twitter.com)
You're viewing a single comment thread. View all comments, or full comment thread.
Comments (32)
sorted by:
Slightly tangential, but this triggered a curiosity...are there any tax implications for court settlements/payouts?
My experience said no (never heard anyone complaining about it, like lottery tax for example) and turns out that's true for the most part...looks like there's a bit of grey area, which I imagine is cases like lost pay reimbursements.
[From the IRS- Tax implications of Settlements and Judgements] <The general rule of taxability for amounts received from settlement of lawsuits and other legal remedies is Internal Revenue Code (IRC) Section 61 that states all income is taxable from whatever source derived, unless exempted by another section of the code. IRC Section 104 provides an exclusion from taxable income with respect to lawsuits, settlements and awards. However, the facts and circumstances surrounding each settlement payment must be considered to determine the purpose for which the money was received because not all amounts received from a settlement are exempt from taxes. The key question to ask is: "What was the settlement (and its corresponding payments) intended to replace?">
A settlement is intended to bring the party back to ‘whole’ which would imply a net zero gain. I don’t know, and it wouldn’t surprise me if the collection agency got their claws in for a piece of the action however.
That's bullshit though
I'm just waiting for him to sue the IRS for taxing his settlements.