Once-in-a-lifetime nontaxable event

moto237 · #1 (**permalink**) 03-11-2010, 03:23 AM

Is there such a thing as a "once-in-a-lifetime extraordinary event" that is non-taxable under the tax code ? I was told by an attorney who has a copyright on an Irrevocable Trust document that my sudden windfall from a currency investment would fall into this category and would not be taxable.
Does anyone have any knowledge of this?

TaxGuru · #2 (**permalink**) 03-11-2010, 01:27 PM

I am sorry to break this news to you, but, I don't this applies to the world of individual taxation! The IRS tax code generally does not provide for such an exception to your activity!

Currency traders are subject to the same tax code as other regular taxpayers. You must file your taxes including all the capital gains on your currency trades!

I think what you are referring to is GAAP (Generally Accepted Accounting Principles) accounting and this is generally true in that the earnings from extra-ordinary events are generally excluded for the purposes of calculated earnings per share!