In 2011, Montgomery County experienced a budget surplus. The County is considering using a portion of the surplus to rebate part of the real estate taxes paid by county real estate owners. What would be the income tax consequences to the real estate owners of receiving the rebate in 2012?

Answer rating: 100% (QA)

The general rule of taxability for amounts received from settlement of lawsuits and other legal remedies is Internal Revenue Code IRC Section 61 that states all income is taxable from whatever source ... View the full answer