What is the name of your state? NY
Thanks in advance. Got a quick question. My Uncle was sued for unjust enrichment by a relative that made improvements to their house. The Lawsuit was nonsense but to get these people off their back (the are disabled) we settled for lump sum amt of 25,000
I have a couple of questions
1) I have "heard" that some settlement dollars are non-taxable to the payee. However since this is a case of unjust enrichment would the Payee have to pay taxes on the settlement?
2) Can the Uncle deduct the settlement off his taxes since its technically a "loss"
3) out of curiosity, (these people were real scum) would the IRS be interested in someone who lived rent free for 13 years in someone else's house? That is considered Income correct?
Thank you in advance
Thanks in advance. Got a quick question. My Uncle was sued for unjust enrichment by a relative that made improvements to their house. The Lawsuit was nonsense but to get these people off their back (the are disabled) we settled for lump sum amt of 25,000
I have a couple of questions
1) I have "heard" that some settlement dollars are non-taxable to the payee. However since this is a case of unjust enrichment would the Payee have to pay taxes on the settlement?
2) Can the Uncle deduct the settlement off his taxes since its technically a "loss"
3) out of curiosity, (these people were real scum) would the IRS be interested in someone who lived rent free for 13 years in someone else's house? That is considered Income correct?
Thank you in advance