Richlist Posted November 28, 2019 Report Share Posted November 28, 2019 Does anyone know if income tax is due on goodwill/ compensation payments ? I've had a payment from a utility company. It's not money they owe me or that is due to me and is not related to a bill. It's a payment to compensate for poor service/ poor treatment. Is it tax free ? Quote Link to comment Share on other sites More sharing options...
Grampa Posted November 28, 2019 Report Share Posted November 28, 2019 Income is income if you take a simplistic view. Quote Link to comment Share on other sites More sharing options...
Richlist Posted November 28, 2019 Author Report Share Posted November 28, 2019 Its not quite as simple as that. We all have the opportunity to receive certain income free of tax ..........there would be a long list. I'm just curious as to whether this would be on that list ? Quote Link to comment Share on other sites More sharing options...
Richlist Posted November 28, 2019 Author Report Share Posted November 28, 2019 Seems in my case it is tax free.... Compensation for personal suffering & injury is exempt from capital gain (and income) tax. It applies to any wrong or injury suffered by an individual. Happy days. Quote Link to comment Share on other sites More sharing options...
Melboy Posted November 29, 2019 Report Share Posted November 29, 2019 I would have said it was tax free. Quote Link to comment Share on other sites More sharing options...
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