No, Attorney Fees are not deductible.
If the settlement was not more than the cost to remedy the damage (or the loss in basis/value if the damage was not repaired) the 1099-MISC is not taxable.
HERE is an IRS link
If you have receipts for the repairs, and the repairs were as much or more than the settlement, you needn't pay tax on that money.
Enter the 1099-MISC Under
Wages & Income
Other Common Income
Income from Form 1099-MISC START
Enter the 1099-MISC as it was reported, Type "Property Damage" in for the description,
Select "None of these apply" for uncommon situations,
"NO" not like main job,
Only got it in 2024,
"NO" no intent to earn money,
DONE
THIS GETS THE FORM ON YOUR RETURN, now back out the cost for repair (or loss in basis)
Wages & Income
LESS COMMON INCOME
Miscellaneous Income, 1099-A, 1099-C START
Scroll all the way down to the LAST option- Other reportable income START
Type "cost to repair damage" or some other description the IRS will understand and enter the amount AS A NEGATIVE AMOUNT (put a minus sign (-) in front of the number
Done
The 1099-MISC as well as the negating entry will both be on Schedule 1 line 8z
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