Home Page link  

Lump settlement from business contract settlement

  
Groups | Search | About
User Password
Register Now! Lost Password?

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated)

 Post an article  get this group's latest topics as an RSS feed add this group's latest topics to your My MSN content add this group's latest topics to your My Yahoo content  add this group's latest topics to your Google content  YahooMyWeb Yahoo!  Google Google  Windows Live Favorites Windows Live  del.icio.us del.icio.us  digg digg  Add to Netscape Netscape
Subject Author Date
Lump settlement from business contract settlement curt 12-13-2006
Posted by curt on December 13, 2006, 10:38 pm
Please log in for more thread options
 If a company receives a large lump sum settlement from a
lawsuit against a customer is it all includable in income in
the year recieved?(assuming cash basis method of
accounting). Are there any conditions that might allow them
to defer the income? Installment payments are not an
option.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Harlan Lunsford on December 15, 2006, 9:59 am
Please log in for more thread options
 curt@redingercpa.com wrote:

> If a company receives a large lump sum settlement from a
> lawsuit against a customer is it all includable in income in
> the year recieved?(assuming cash basis method of
> accounting). Are there any conditions that might allow them
> to defer the income? Installment payments are not an
> option.

When in doubt, ask "WWGD"? (what would GAAP do?) or say.

ChEAr$,
Harlan Lunsford, EA n LA

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Harlan Lunsford on December 15, 2006, 10:05 am
Please log in for more thread options
curt@redingercpa.com wrote:

> If a company receives a large lump sum settlement from a
> lawsuit against a customer is it all includable in income in
> the year recieved?(assuming cash basis method of
> accounting). Are there any conditions that might allow them
> to defer the income? Installment payments are not an
> option.

When in doubt, ask "WWGD"? (what would GAAP do?) or say.

ChEAr$,
Harlan Lunsford, EA n LA

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Similar ThreadsPosted
Claim settlement ? ? ? November 14, 2007, 1:39 pm
Treatment of a stock settlement December 28, 2006, 9:13 pm
WorldCom Settlement Question December 28, 2006, 9:32 pm
Malpractice settlement - taxable? February 21, 2007, 6:28 pm
Tyco cash settlement November 29, 2007, 11:35 pm
Estate settlement - taxable? April 30, 2008, 12:08 pm
How to report cap loss due to settlement? May 28, 2008, 11:42 am
Federal tax implication of lawsuit settlement February 14, 2007, 9:42 pm
Declaring Class Action Settlement? March 6, 2007, 5:25 am
Are penalties from a lawsuit settlement taxable? December 9, 2007, 10:34 pm

Contact Us | Privacy Policy
This site is not affiliated with Intuit - makers of Quickbooks and Quicken software
This site is not affiliated with Sage Software - makers of Peachtree accounting software
XML SitemapXML Sitemap