@Johnsbr2 wrote:
Yes, I was the guarantor on a lease for a rental space in a shopping plaza for a family business. The landlord paid for the lease to broken early. There was a dispute on who the funds should go to, either the owner of the business or whose name the lease was in. The funds were held by the court until a court decision was made. I won the case and they released the funds to my lawyer. No one has sent a 1099.
If you were the business, I would probably treat it as a rent rebate or discount. It might not be taxable, but the business would take a reduced expense deduction for the rent (or they could deduct all their rent and then report this as taxable income.).
Since you are not the business and you don't have any expenses to offset the income, I agree that "other reportable income" is the best way to go, assuming there are no other weird facts.
