9/11 aid to corporation is taxable

Cantor Fitzgerald, a corporation in New York City, lost 658 employees in the September 11, 2001, terrorist attack on the World Trade Center. It didn’t report grants it received because of having its business was seriously affected by the attack. The Tax Court says the grants were income and could not be excluded. The Tax Code specifically provides an exclusion for disaster-related grants only to individuals and not to corporations. #IdeaoftheDay