My daughter in law was badly injured in an auto accident. The other driver was entirely at fault, but has minimal insurance and no assets. So she can probably win a substantial damage award, but can't collect much of anything.
Is there a tax benefit to that? Damages aren't taxable, so it really amounts to an noncollectable debt, which is deductible. If so, would it be a single year (which would be nearly useless) or roll over until used up?
- posted 8 months ago