 | 
10-09-2009, 11:37 AM
| | Junior Member | | Join Date: Jun 2009
Posts: 13
| | | Settlement Award Tax
What is the name of your state (only U.S. law)? TEXAS
My brother, sister, and I, received checks from a settlement award. Our lawyer said we did not have to pay taxes on it.
The situation is as follows.
I never wanted my part, and I told my lawyer to just give my part to my brother, but he forgot and ended up sending a check under my name. I just went ahead and gave it to my brother, and he deposited the check to his bank account.
My question is, how is this going to work out? Will he have to pay taxes on what I gave him? |
10-09-2009, 12:05 PM
| | Senior Member | | Join Date: May 2004
Posts: 41,363
| | Quote:
Originally Posted by blasfemaz  What is the name of your state (only U.S. law)? TEXAS
My brother, sister, and I, received checks from a settlement award. Our lawyer said we did not have to pay taxes on it.
The situation is as follows.
I never wanted my part, and I told my lawyer to just give my part to my brother, but he forgot and ended up sending a check under my name. I just went ahead and gave it to my brother, and he deposited the check to his bank account.
My question is, how is this going to work out? Will he have to pay taxes on what I gave him? | This is the sort of things that its critical that people ask questions about BEFORE they do things, rather than afterwards.
What was the settlement actually for, and how much was your share?
__________________
in vino veritas |
10-09-2009, 12:14 PM
| | Junior Member | | Join Date: Jun 2009
Posts: 13
| | | Our mother passed away in a car accident, and the automaker was at fault.
Each of us received a check for 105k.
Thanks for your help. |
10-09-2009, 12:32 PM
| | Senior Member | | Join Date: Mar 2006
Posts: 6,673
| | | It's your money and you made a gift of the amount to your brother. Be sure to file a gift tax return. I'd ask the attorney what the settlement was for exactly so you can bring the letter he gives you to a tax professional as it sounds very possible the settlement is income.
__________________
When you are a Bear of Very Little Brain, and you Think of Things, you find sometimes that a Thing which seemed very Thingish inside you is quite different when it gets out into the open and has other people looking at it.
--W. T. Pooh (aka A. A. Milne) | |
Currently Active Users Viewing This Thread: 1 (0 members and 1 guests) | | | | Thread Tools | | | | Display Modes | Rate This Thread |  Linear Mode | | 
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts
HTML code is Off | | | |
All times are GMT -5. The time now is 07:46 PM.
