Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
Only the amount of settlement that is above and beyond your basis of the property
would be taxable/
Therefore, this settlement reduces your basis in the property
I'm sorry that you lost your view...where is your property - is it waterfront?
Can you point me to a IRS reference for this treatment?
I am looking for something for you, I just know that in the event the settlement is compensatory, only if the settlement exceeds your basis is any amount taxable
I need to somehow back that up with an example or publication, code section, court case, etc. "just knowing" doesn't really work. You haven't really helped me if you can't point me in the direction that this advice comes from.
I'm reading the audit guide now, to see if there's a similar instance
The audit guide was no help, but publication 4345 deals with this
Second page, very top says this plain as day
Is there anything else that you need assistance with?
Please let me know if you require further assistance. If not, please rate as "excellent" so that I may receive credit for assisting you today
That's it. Thank you very much.
You're welcome. Glad I could help. If you need anything else, if you need any tax, finance, or social security questions answered please ask for me directly