Federal Taxation of Workers' Compensation Income

Generally, gross income received by an individual is taxable by the federal government. A notable exception is for workers' compensation income. Workers' compensation, either received by the injured worker or his survivors, is completely exempt from federal taxation as long as it is paid under a Workers' Compensation Act or a statute that operates in the nature of a Workers' Compensation Act by providing income for injuries or illness suffered in the course of the worker's employment. Basically, the statute must restrict the payment of benefits to work-related disabilities.

Capitalization of Motion Picture, Master Recording, and Video Expenses

If you are the producer of a movie or sound recording, you already know that you spend a lot of money before your creation is ready to earn some money. The question is how you handle all of those incurred expenses for federal income tax purposes.

Property Exempt from State and Local Taxation

When a state or local governing body decides to impose a tax, all property coming within the scope and purpose of the statute is subject to taxation unless the legislature has created an express exemption for reasons of public policy. The fact that the owner of certain property is exempt from taxation under the Internal Revenue Code does not determine whether or not that property is exempt from state or local taxation. It is the legislating state or local government, not the Internal Revenue Service, that is the final word on whether certain property is exempt from its taxing authority.