Well, I am in receipt of such. And personal injury awards are not taxed - they are considered compensation for loss. Income loss is taxed.
As for as your deductions. Think about it. IF there is anything that makes me madder I don't know what it is.
Come on, if a business couldn't deduct its cost of doing business, it could not be in business.
Why shouldn't I be able to deduct costs of holding an investment from the return on such investment? It only makes sense. Or deduct the cost of improvement of a capital asset when figuring capital gain?
I should be able to claim a depreciation adjustment as I age! After all, companies can depreciate their capital assets as they (theoretically) become less useful - when my brain cells die as I age, I ought to be able to claim a depreciation on the wasting of said asset.
The government recognizes some personal handicaps as depreciable properties of individuals, why not other impaired features, looks, vitality, teeth, hair, etc. It makes me madder than hell that they don't! LOL
Come on, if a business couldn't deduct its cost of doing business, it could not be in business.
Come on yourself. The whole nine yards wouldn't be necessary if there were no income tax. Do you realize what you are saying here?