Tax Law (Questions About Taxes)/Lawsuit Settlement

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Question
I have a couple of questions:

1. Would there be any tax consequence to a lessee if they received free-rent for three years as part of a lease cancellation settlement?

2. If additional cash from the settlement was ordered to be paid directly to a family member (rather than the individual), would this be considered a gift?

Thanks!

Answer
You should be morbidly ashamed to consider asking questions here if you have any hope of being a successful tax consultant!

I am disappointed to say the least!!!!



Yes

No (it would atill be income to the original recipient). You can't assign income.  Tax law 101 (nice try).

Your questions belie more deeply seated/underlying probls

Don't try to fly this plane without a license.    Flying is easy.   It is landing that is the important part  

Tax Law (Questions About Taxes)

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MEdusa

Expertise

Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).

Experience

19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

Organizations
AICPA, CSCPA (Ct society), National Tax,

Publications
a bunch.

Education/Credentials
MS tax and other post graduate coursework

Awards and Honors
variety including Summa Cum Laude

Past/Present Clients
I don't disclose or kiss and tell

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