Is a settlement amount you received for non-disclosed house repairs taxable? Keep in mind none of the money is punitive.?
- STEVEN FLv 76 months ago
PUNITIVE damages are taxable.
COMPENSATORY damages are generally not taxable.
Unless your lawyer was a MORON, at least part of the damages should be considered compensation for the cost of repairs. In fact, in many jurisdictions, punitive damages CANNOT be awarded without some amount of compensatory damages.
- Max HooplaLv 76 months ago
I never got any.
- PLv 76 months ago
Generally settlements in general are not taxable since they are reimbursing you for expenses or damages that you incurred. Otherwise it's hard to tell what you are specifically referring to.