Abstract
Under the federal income tax law, compensation received in consequence of personal injuries or sickness is specifically excluded from gross income. In view of the prevailing income tax rates and the substantial size of many damage verdicts in personal injury actions, this exemption is of considerable importance to recipients of personal injury awards. The tax-exempt status of such awards has created two issues which have arisen frequently in personal injury trials. Basically, the issues are whether the plaintiff's tax savings should be a factor in computing the award and, if not, whether the jury's attention should be directed, through an instruction, to the tax-exempt status of the award.
How to Cite
7 Ariz. L. Rev. 272 (Spring 1966)
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