Tax
Aug. 26, 2025
Charity or tax trap? Navigating the hidden pitfalls of legal settlements
Directing settlement payments to charity can reduce a plaintiff's taxable income in some cases, but IRS rules, legal fees, and limits on charitable deductions often make the tax implications complex and require careful planning before signing an agreement.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
The news that Paramount settled with President Donald Trump for $16 million over "60 Minutes" edits that Trump alleged favored then Vice President Kamala Harris prompted criticism from some in the media. When Harris was asked about the Biden administration's relationship with Israel's prime minister, CBS producers used different portions of her answer on two programs. One response was on CBS' "Face the Nation," with a shorter one on "60 Minutes." Many in the media criticized ...
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