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taxes on malpractice settlement

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margep

Junior Member
Would i have to claim a settlement from a malpractice law suit (sued a lawyer for non performance), devaluation of property and lost legal and engineering fees. im in n.j
 
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LdiJ

LdiJ

Senior Member
margep said:
Would i have to claim a settlement from a malpractice law suit (sued a lawyer for non performance), devaluation of property and lost legal and engineering fees. im in n.j
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Whatever portion of a lawsuit settlement that would replace taxable income, would be taxable income to the recipient. Whatever portion of a lawsuit settlement that replaces already taxed money would not be.

That's a simplistic explanation. It would be best to have a tax professional help you with this one.
 
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