Extract
Taxation of contingent fees.
Cases of this kind are not easy to decide. In seeking to reconcile the implications of the infinite variety of facts presented by the decided cases and all that has been said about the subject of anticipatory assignment of income, one is likely to be displeased with his own wits; and may find his mind teetering between conflicting conclusions.... (1)
Rarely is the federal income tax applied differently under identical circumstances depending on where in the country the taxpayer resides. That is the case, however, for taxpayers who receive payments on judgments or settlements and whose attorneys receive a share of those payments as contingent fees. Florida is among a handful of states within which taxpayers may be accorded much more favorable tax treatment for such payments. This article will explore applicable law, how we got there, and where we're likely to go from here. The issue is whether a contingent fee paid directly by a defendant or its insurer ...See the full content of this document
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