Demi Tax

Question 1

Income:

Settlement proceeds from destruction of home for retirement

Answer 1

Dons use of property insurance settlement from destruction of his home will result in proceeds over and above value of the house itself and be treated as a GAIN that must be included as income for 2009 tax return.

Main Rule:
Income includes an ascension to wealth, regardless of its source. An ascension to wealth occurs from a sale or other disposition when the properties of that sale are “realized”- is when the sale is complete and the proceeds have been received by the selling party. So long as the individual has dominion or control over the money or property it will be treated as income. Income received as a result of ..

INVOLUNTARY CONVERSION OF PROPERTY: through its destruction