Basic Income Tax: Settlements Employee Fringe Benefits. Professor Jack Williams. Compensation for Injury and Sickness. General Rule: Settlement and Court Awards are Gross Income.
Professor Jack Williams
PAYMENTS FOR PAIN AND SUFFERING
B, an employee of X, receives a salary plus the rent free use of a home owned by X. X does not require B to live there and there is no relationship between the home and work.
Must B include the value of the home in his gross income?
Fringe Benefits constitute gross income under §61(a).
Recall that the form of receipt or of compensation does not matter under Treas. Reg. §1.61-1(a).
Gross Profit Percentage = (total sales – cost of goods)/total sales
Recurring situation: “Tale of the Holiday Gift!”