IT-467R2 "Damages, Settlements and Similar Payments"

A payment for damages will usually be on account of capital if the payment creates an enduring benefit or it preserves or protects a capital asset.

6. ...For purposes of establishing whether damages have been incurred for the purpose of gaining or producing income:

• the taxpayer need not have...

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Deductibility for termination payments that commute deductible expenses

16. Where amounts originally payable under a contract would have been...

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