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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29919
Experience:  Taxes, Immigration, Labor Relations
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We are settling a property dispute with our neighbor. will

Customer Question

We are settling a property dispute with our neighbor. will the funds paid to us be taxable.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. The character of the income depends on the nature of the underlying claim.
As your award is for several settlement items - your settlement document generally must itemize the amount of the award for each item.

Expert:  Lev replied 1 year ago.

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