Thank you for your response but leaves me a bit confused. If, as you say, settlement is not taxable now then I do not need adjustments for out of pocket costs to get back to status quo before improper and unsatisfactory installation without notice. The settlement amount was in my mind only cost to remedy the problem (remediation) and general damages for loss of quiet enjoyment. I just wanted the problem done with quiet enjoyment and not being out of pocket to get back to where we were before original change. The contributing insurers to the settlement just wanted to be done with a suit where a jury could have awarded substantially more in damages for a continuing nuisance caused by excessive sound transmission which was about to go to trial without the flooring being changed which diminished the value and use and enjoyment of my property. If the offending parties, upstairs owner, Building Manager, and HOA Board had remedied the installation, when I discovered the installation then I would never have and never have had to sue in the first place and thought the settlement was not for attorney fees and costs but for general damages only and the cost to change flooring and sound proofing in unit above. How in any real World is that income to me? Which is taxable now or reduces the basis in my property?
