I am not so sure on that

If you feel uncomfortable, you better check with an accountant to make sure. I think it depends on if you have personal injury or not, and it also depends on the money is paid in lieu of what.

the basic principle is that the settlement payment in settlement of a dispute will be analyzed the same as as settlement of a law suit. Therefore, money paid in replacement of a property might be treated as sale of the old property. if this is the case, then you might have a gain or a loss, depending on your basis, the value of your old car, that is.

that being said, if you don't report it, the chances of you being caught for not reporting is very slim, as IRS usually is not automatically notified for this type of payment.

所有跟帖： 

• car insurance proceeds for physical injury are non-taxable -如尘- ♀ (228 bytes) () 11/02/2008 postreply 17:46:48

• if the payment only covers the value lost in the car -caliber- ♂ (233 bytes) () 11/02/2008 postreply 19:46:43

• 也许我没说清楚 -JuneJune- ♀ (36 bytes) () 11/02/2008 postreply 22:35:39

• 无论是保险公司赔你的车钱还是保险公司赔你的人身方面的钱 -战车上的狸花- ♀ (320 bytes) () 11/03/2008 postreply 12:43:49

• 解释得真清楚。谢谢！ -JuneJune- ♀ (0 bytes) () 11/03/2008 postreply 13:30:02

• can you point to the IRS Reg. that says so? -caliber- ♂ (1037 bytes) () 11/03/2008 postreply 15:33:32

• another more realistic example -caliber- ♂ (479 bytes) () 11/03/2008 postreply 15:42:52

• 可以看这里 -战车上的狸花- ♀ (882 bytes) () 11/03/2008 postreply 21:59:32

• that is not the law -caliber- ♂ (550 bytes) () 11/03/2008 postreply 22:20:38

• 唉。IRS是对GROSS INCOME 征税的。如果你要弄清楚 -战车上的狸花- ♀ (400 bytes) () 11/03/2008 postreply 23:09:04

• 我确实是为了较汁儿而较汁儿， 为了绞湖而绞湖 -caliber- ♂ (591 bytes) () 11/04/2008 postreply 09:47:15

• A correction: not all punitive payments are non-taxable. -如尘- ♀ (0 bytes) () 11/03/2008 postreply 15:44:24

• And not all compensatory damage is non-taxable either -caliber- ♂ (99 bytes) () 11/03/2008 postreply 15:47:36