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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 Best Answer

    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?


    The more I know the more I don’t know.
    BobKamman
    Level 15

    Taxable to the corporation

    3LT
    Level 2

    The Scorp received the money.