PAC in NJ
Is a lawsuit settlement taxable as income for Federal taxes and the state tax in New Jersey?
It was an insurance settlement in a car accident for the estate wherein the principal of the estate passed away before the case was settled out of court. A year had passed since his death when the settlement was finally reached, and upon his death the beneficiaries had payed all Federal income and NJ state taxes, debts and bills, including the NJ Death Tax on the Estate.
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