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Taxability of injury claim

3LT
Level 2

Scorp, pro motorcycle rider 100% shareholder, rider becomes injured, yearly scorp pays for an injury policy  through Lloyds of London. Pays 80,000 a year for policy of which Scorp expenses the 80g. 

The shortened season after injury produces a claim for 291,000. Is it taxable? Or is the Corporation able to show it tax free?

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1 Solution

Accepted Solutions
BobKamman
Level 15

Taxable to the corporation

View solution in original post

3 Comments 3
sjrcpa
Level 15

S Corp receives the money?

Or the rider?


Ex-AllStar
BobKamman
Level 15

Taxable to the corporation

3LT
Level 2

The Scorp received the money.