Good day. I am sorry you had a long path to resolve the sound issue in your condo.
Per the IRS, settlements for the loss in value of property that are less than the adjusted basis of your property are not taxable and generally do not need to be reported on your tax return. However, you must reduce your basis in the property by the amount of the settlement. IRS Publication 4345 covers all types of settlements and the tax ramifications.
If you believe the settlement falls into the category of loss in value of property and you receive a form 1099, I would suggest that you contact the settling issuers and request that the 1099 be adjusted.
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