Hi MonikaK1
The lawsuit complaint and the HOA covenants included clauses for reimbursement of legal fees. The complaint also included clauses for injunctive relief that could not be settled with a monetary award.
The settlement agreement stipulation more or less covered the injunctive relief, with a remdiation plan, the cost of whcih would be totally borne by the defendant. There wa no increase in property value, as the complaint asked for the a permit to be sought from the township and any stormwater mitigation solutions to be approved by the township including excavation to bring the land back to its former state before the illegal stormwater drain was constructed. The illegal construction, although done on my property, effected my neighbors, the township, and community as it represented a significant safety hazard to all.
A seperate NDA was required which I had to sign as well as w-9 to obtain my legal fee reimbursement( not exactly but close enough to what I spent). THe NDA did not spell out the exact purpose for which the The 1099-G I received had only one entry for block 10 - attorney fees. I have all the bills I paid the attorneys.
So I am thinking the Covenants spell out legal fee recovery, the complaints spell out legal fee recovery, and the 1099-G only has attorney fees boxcheck.
I believe no income was gained by this lawsuit. What forms are necessay to be completed for my taxes to adjudicated this?
