Wills, Trusts & Estates Prof Blog: Tax on Shipwreck | 1/29/12

100 USD under ultraviolet light

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The Costa unit of Carnival Cruises has offered the physically uninjured passengers about $14,460 (USD) each to compensate for lost baggage and the emotional trauma from the incident. Even though the accident happened in Italy, every U.S. citizen and permanent resident has to report worldwide income. Damages for physical injuries are tax-free, but emotional injuries are not clearly tax-free.

For full article see Wills, Trusts & Estates Prof Blog: Tax on Shipwreck. See also,  Robert W. Wood, IRS To Collect on Italian Cruise Ship Settlements, Forbes, Jan. 28, 2012.

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About vinhsu

Center City Philadelphia General Practice Law Firm with emphasis on Criminal Defense, Family Law, Immigration, Real Property, and Wills/Trusts/ Estate Planning. Licensed in Pennsylvania and New Jersey.
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