Tax enquiry regarding deductions and insurance payouts?

By Marc Sevitz · Updated 6 June 2014

A client has broken his fingers and cannot perform his work commitments as a personal trainer and actor. He is trading as a sole proprietor. First question is, will he be taxed on his payout for impaired benefits from his insurance company? Secondly, what supporting documents need to be submitted to the insurance company for this payout? Thirdly, what expenses can be deducted from a client who is either a model/actor that is paid via an agent?

TaxTim Marc said:
15 June 2014 at 21:32

The broker will let you know what documents you need in order to receive the payout and also if it is taxable or not, this will depend on the nature of his contributions.

Who is looking to deduct the expenses?