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I have to write a three page memo but I am stuck on a couple of questions. A lawyer receives a large influx of money he received as a result of winning a large jury verdict on behalf of his client. His client was awarded $2,000,000 in damages and the fees were $300,000 plus recovery of expenses paid up front in the amount of $25,000. How is the $300,000 taxed? What about the $25,000? What can he do to minimize his tax consequenses?
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