What happened when you returned the car?
Did they just keep your 5,500 and keep the car?
If so, the remaining settlement would be considered punitive damages and is taxable.
The amount the attorney charged is included with the taxable amount.
You lost 5,500
They gave you 15,000
You made 9,500 taxable unearned dollars.
There are no expenses to claim because you are not in the business of filing lawsuits.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
