14. A taxpayer was in an automobile accident while he was going to work. He was in a rehabilitation facility for ten months re-learning how to walk. The resulting lawsuit was settled, and he received the following amounts for: medical expenses lost wages emotional distress due to injuries punitive damages O $500,000 500,000 How much of the settlement must he include in gross income on his tax return? O $25,000 O $575,000 $ 120,000 75,000 O $0 25,000
14. A taxpayer was in an automobile accident while he was going to work. He was in a rehabilitation facility for ten months re-learning how to walk. The resulting lawsuit was settled, and he received the following amounts for: medical expenses lost wages emotional distress due to injuries punitive damages O $500,000 500,000 How much of the settlement must he include in gross income on his tax return? O $25,000 O $575,000 $ 120,000 75,000 O $0 25,000
Chapter2: The Deduction For qualified Business Income For Pass-through Entities
Section: Chapter Questions
Problem 34P
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Transcribed Image Text:14. A taxpayer was in an automobile accident while he was going to
work. He was in a rehabilitation facility for ten months re-learning
how to walk. The resulting lawsuit was settled, and he received the
following amounts for:
medical expenses
lost wages
emotional distress due to
injuries
punitive damages
O $500,000
O $25,000
How much of the settlement must he include in gross income on his
tax return?
O $575,000
$ 120,000
75,000
O $0
25,000
500,000
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