The money is being reinvested into the property to fix the defects, which I believe makes it non-taxable. How do I report this money without being taxed? If I enter the 1099 info., it automatically calculates the tax.
2007-03-14 15:07:56 · 6 answers · asked by spygirl 4 in Business & Finance ➔ Taxes ➔ United States
Ask your attorney. He's already been paid for winning this money, and he's probably the best qualified person you know to tell you about this.
2007-03-14 15:11:04 · answer #1 · answered by Ralfcoder 7 · 2⤊ 1⤋
Only settlements for physical injury and illness are tax exempt. Unless physical injury or illness to yourself were involved, it's fully taxable to you.
You can use the portion that you spend on the correction of the defects to increase your basis in the property, however. That will reduce your gain when you eventually sell.
2007-03-14 15:24:14 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
First: To David C....."wrongful lack of life is seen a form of disability..." My goodness. you're ignorant. she will be able to no longer ought to pay federal earnings taxes on it. some states will tax the settlement. She needs to have a consultation with a tax lawyer.
2016-12-02 00:44:20 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Go to H&R block. Or call them. They should be able to answer that. I wouldn't know. But I do know if you get a large inheritance you have to pay. If you win over $5,000 in lottery you have to pay.
2007-03-14 15:12:02 · answer #4 · answered by JennTarbox 2 · 0⤊ 3⤋
talk to the person that will do your taxes, they should know.
2007-03-14 15:10:40 · answer #5 · answered by Ms. CityKitty 3 · 0⤊ 1⤋
go to H&R block
2007-03-14 15:10:53 · answer #6 · answered by Anonymous · 0⤊ 3⤋