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Bill, Enrolled Agent
Category: Tax
Satisfied Customers: 3151
Experience:  EA, CEBS - 35 years experience providing financial advice
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Is a compensary settlement for an automobile accident taxable

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Submitted: 8 years ago.
Category: Tax
Expert:  Bill replied 8 years ago.

If it is for physical injuries then it is not taxable. If it is for the loss of use of your car then any amount in excess of your basis in the car may be taxable. See the following IRS link which provides detailed information -


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