Tax Treatment of Judgments and Settlements

Counsel should include in its analysis of a case the taxability of the anticipated and sought after damages as the tax effect could be substantial.

9 minute read October 01, 2024 at 08:37 AM

Douglas Eisenberg

Tax Treatment of Judgments and Settlements

One of the most common underappreciated aspects of litigation is the taxation of the outcome, whether by judgment or settlement. This is true for both the plaintiff and defendant. With respect to the plaintiff, how will the litigation proceeds be taxed, if at all?

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