Compensatory Damages - House destroyed by foreign government in a foreign country

[socbu01]

My house was destroyed by a local government/town in a foreign county. If I win a lawsuit against the town and I'm reimbursed for my house with the interest since the lawsuit was started, would I have have to report this as an income and pay taxes on this reimbursement?

Would this be considered a compensatory damages since this is loss of capital assets? Are these "Special Damages" or "Actual Damages"?

Thanks.

 

[tranquility]

Insurance or other compensation for loss is not "income". If you are only paid for your loss, it is unlikely you have a tax issue.

 

[HomeGuru]

My house was destroyed by a local government/town in a foreign county. If I win a lawsuit against the town and I'm reimbursed for my house with the interest since the lawsuit was started, would I have have to report this as an income and pay taxes on this reimbursement?

Would this be considered a compensatory damages since this is loss of capital assets? Are these "Special Damages" or "Actual Damages"?

Thanks.

**A: I sure hope it was not a rocket or bomb that did it.

 

[socbu01]

**A: I sure hope it was not a rocket or bomb that did it.

HomeGuru, my house was destroyed by bulldozers.