Given that the purchase price was $27K, I put $0 in the "Taxable Attorney's Fees" box. When I did the federal review it wants a Sched C. When I click the spot, it pops up a "link to Schedule C" dialog with a "Create new copy. Enter the Schedule C principal business or profession". I then did a review and I got more errors, namely the Sched C stuff. I started filling this out and got lost.
I looked at the disbursement sheet from the attorneys and it is "Total Cash and Keep Settlement Amount Including Client's Recovery and Attorney's Fees, Costs, (and expenses)". It also states $5K to clients and $10K to the firm. There are no penalties paid by GM.
Per your reply, since there are no punitive damages, this means there is no taxable income, correct? How do I enter that since the Sched C doesnt' seem to fit.
