A Settlement Replacing Lost Business Profit Is Generally Taxable Operating Income
The payment’s purpose controls the analysis, even when the check is described as damages.
TOPIC COLLECTION
Operating income
A focused reading path from The Profit Planning Journal. Start with the question closest to your situation, then review the linked sources and documentation steps.
A Truly Refundable Customer Deposit Can Remain a Liability Until Dominion Changes
Customer-controlled refund rights distinguish a deposit from an advance payment for committed purchases.
A Customer Paying Your Supplier Directly Can Still Create Gross Business Receipts
Directed payment discharges an obligation without making the earned fee disappear.