Vanessa A
Expert Alumni

Get your taxes done using TurboTax

No, If the settlement received was for property damages and made you whole but did not cause you to have a gain or come out better than you started, then this would not be taxable income. 

 

This would be treated similar to getting money from the insurance company that paid to replace the damage.  It is only taxable when it puts you in a better position than you started. 

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