BP GULF OIL SPILL CLAIMS

BP Gulf Oil Spill Claim Payments may be taxable.

BP PAYMENT TYPES:

Wages:

• Wages are subject to income tax and may be subject to self-employment taxes.

Rental payments:

• Real property rental income is subject to income tax.
• Personal Property (boats, equipment,ect)- subject to income tax and self-employment tax.

Property Damage Reimbursements:

• Payments for damaged property may, or may not, be taxable depending on basis in the property.

Self- Employment Income:

Income that replaces profits from business losses:

• Will be reported on 1099-Misc, and
• May be subject to self-employment taxes.