Homework Chapter 9

Homework Chapter 9 - injuries to also be excluded from...

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Homework Chapter 9 Problem 1a: The full $100,000 award is excludible under section 104(a)(2). Problem 1b: Even though a portion of the award appears to be a replacement of what would otherwise have been ordinary income includible in gross income, since the award is for a personal injury, the entire amount is still excludible from income under section 104(a)(2).
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Homework Chapter 9 Problem 1c: The punitive damages are specifically includible in gross income under section 104(a)(2). Problem 1d: Section 104(a)(2) allows for emotional distress awards as a result of physical
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Unformatted text preview: injuries to also be excluded from gross income. • Problem 1e: Since this emotional distress recovery is not related to a physical injury, it is not excludible from gross income. Homework Chapter 9 • Problem 1f: This recovery is not for a physical injury and is therefore not excludible from gross income. • Problem 1g: This recovery is actually excludible from income as it is related to a physical injury. This is the case even though the terms of the settlement note that the payment is for punitive damages which are normally not excludible from income....
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This note was uploaded on 09/27/2008 for the course BUS 1000 taught by Professor Professor during the Spring '08 term at Cal Poly.

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Homework Chapter 9 - injuries to also be excluded from...

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