Legal Question in Personal Injury in Florida
I was in a car accident and received a settlement. I paid back to my insurance company their expenses and after a few months, invested the rest in treasury notes. I report as income the interest I receive twice a year on this note and thus pay the taxes. When the note majures, is there any tax liability on the lump sum of principle I receive?
Asked on 11/11/10, 7:21 am
1 Answer from Attorneys
Michael Tobin
Michael M. Tobin, P.A.
No. Your return of principal is not income.
Answered on 11/16/10, 9:47 am