What is the name of your state? California. Can I partially shield monies won in a 2018 legal settlement via mediation by investing them back into my business? I took about 55% of the award up front and structured the rest over next 5 years. I am a sole proprietorship and the investment would be a home in which I build my new studio and for which I've always deducted partially in the past. One last bit of info: I won the settlement for an illegal eviction that forced me from my previous studio of 17 years. Thanks