In litigation, a little tax planning pays off

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Abstract: The economic impact of a settlement or damages award depends on whether it’s taxable to the plaintiff and deductible by the defendant. By incorporating tax strategies into the litigation planning process, attorneys can help their clients improve their chances of a tax-beneficial outcome. This article explains how damages are taxed, when they’re deductible, and how tax planning can improve a client’s economic outcome. Fresenius Medical Care Holdings Inc. v. U.S., No. 13-2144 (1st Cir. 8/13/14)