We settled on a lawsuit with a car manufacturing co. the lawyer is the one that mailed and paid the proceeds to us. but we got a 1099 misc. from the manufacturing car co. for the full amount of the settlement. SO WHAT can I deduct from the proceeds if the amount we received is less than the amount of the 1099?
the lawyer sent the following with the check: (Not actual figures)
total damages $ 122K ($44K actual damages) +$78K (additional damages
recovery for actual damages $ 44K
recovery from $46K ($78K - 31K (40% contingency fee per our retainer agreement)
additional damages
Total to client $90K ($44K + $46K)
Attorney fees and cost $31 +attorney fees, cost and expenses to de determine.
