DEFINITION of 'Holocaust Restitution Payments'
Money paid by the governments of Germany and Austria to partly compensate victims persecuted by Nazi Germany or its allies. In addition to persecution, restitution payments are also made to compensate for lost housing, destroyed businesses and liquidated bank accounts.
BREAKING DOWN 'Holocaust Restitution Payments'
Holocaust restitution payments are not taxable as income at the federal level if the payment is received by someone who was persecuted by the Nazis on the basis of race, religion, physical or mental disability, or sexual orientation, or if payment is received by the heirs or estate of such a person. In contrast, Holocaust restitution payments that are received as compensation for stolen assets are considered taxable income.