Question
Actress Nola Talent sued her coworker, actor Burt Dirt, for slander, citing his speech at a press interview where he labeled her a floozy and
Actress Nola Talent sued her coworker, actor Burt Dirt, for slander, citing his speech at a press interview where he labeled her a “floozy” and an “incompetent excuse for an actress.” In her suit she claimed that as a consequence of this slander she not only felt degraded but was denied further acting roles. The court awarded her $107460 in compensatory damages for damage to her acting career and $1380 in punitive damages for the slander of her character.
How much of these proceeds are taxable to her?
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