[Audio] The Missouribar – 2020 Taxation of Settlements & Judgments in Civil Litigation

Keywords List

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Summary

• Archive: Format:Audio Only Description Two of the questions clients have about settlements are: Is the settlement taxable?

• The answers to these questions turn on the nature of the underlying claim(s) giving rise to the settlement.

• Some settlements are taxed as ordinary income, subjecting income tax and employment tax withholding in certain instances.

• Other types of settlements are taxable as capital gains.

• There are also questions related to the treatment of that portion of the settlement, if any, attributable to attorneys’ fees.