I received a Class action settlement for damages by a plumbing manufacturing company that had defective lines that would suddenly fail and flood the house. Huge lawsuit over 5 years and we were awarded damages to have to replumb our whole home (3340 sq feet 4 bathrooms and kitchen) I was told that damages aren’t taxable, is that true? Taxes would take a huge chunk away from us being able to re-install the plumbing. If so,what is the IRS code?
