BP GULF OIL SPILL CLAIMS
BP Gulf Oil Spill Claim Payments may be taxable.
BP PAYMENT TYPES:
- Wages are subject to income tax and may be subject to self-employment taxes.
- 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.