Suresh is a technician working with Melissa’s car repair centre. Due to a dangerous workplace accident, Suresh became seriously ill. Suresh received compensation of $131,000. The lump sum was divided into $57,000 loss of earnings, $43,000 loss of future earning capacity and $31,000 for pain and suffering. Based on legal provisions and case law, advise Suresh, will any of these amounts be assessable income? Furthermore, advise Suresh whether it would be better to accept a lesser
Suresh is a technician working with Melissa’s car repair centre. Due to a dangerous workplace accident, Suresh became seriously ill. Suresh received compensation of $131,000. The lump sum was divided into $57,000 loss of earnings, $43,000 loss of future earning capacity and $31,000 for pain and suffering. Based on legal provisions and case law, advise Suresh, will any of these amounts be assessable income? Furthermore, advise Suresh whether it would be better to accept a lesser
Chapter5: Gross Income: Exclusions
Section: Chapter Questions
Problem 8DQ
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Suresh is a technician working with Melissa’s car repair centre. Due to a dangerous workplace accident, Suresh became seriously ill. Suresh received compensation of $131,000. The lump sum was divided into $57,000 loss of earnings, $43,000 loss of future earning capacity and $31,000 for pain and suffering. Based on legal provisions and case law, advise Suresh, will any of these amounts be assessable income? Furthermore, advise Suresh whether it would be better to accept a lesser
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