Luck_Club
Full time employment: Posting here.
- Joined
- Dec 5, 2016
- Messages
- 733
I'm currently settling a lawsuit for my company, and the other party wants to pay the settlement in a lump sum. The suit was for lost profits or lost income, so it is a taxable event. The income loss was over 10 years. I seek the wisdom and guidance of how to best handle this.
My attorney is telling me the following:
1) They want to settle with me personally (worst option in my mind).
2) A structured settlement isn't an option.
For a number of reasons I don't want to receive the rather large sum of income in 2017. It essentially has the impact of leaving me about 1/3 of the gross amount after taxes and another negative financial impact.
I know and fully intend to pay taxes on the income, so I'm not trying to avoid that, but structure the realization of that income.
My preferred receipt of the settlement would be:
1) payed to my company over a 10 year period
2) Paid to me personally over a 10 year period
3) Paid to my company in a lump sum in 2018
4) Paid to my company in a lump sum in 2017
5) Go to court rather than the lump sum personally in 2017.
My attorney is telling me the following:
1) They want to settle with me personally (worst option in my mind).
2) A structured settlement isn't an option.
For a number of reasons I don't want to receive the rather large sum of income in 2017. It essentially has the impact of leaving me about 1/3 of the gross amount after taxes and another negative financial impact.
I know and fully intend to pay taxes on the income, so I'm not trying to avoid that, but structure the realization of that income.
My preferred receipt of the settlement would be:
1) payed to my company over a 10 year period
2) Paid to me personally over a 10 year period
3) Paid to my company in a lump sum in 2018
4) Paid to my company in a lump sum in 2017
5) Go to court rather than the lump sum personally in 2017.