We built about two years ago. Unfortunately, there were issues, that were only discovered after. The builder acknowledged it and gave us a check to utilize for fixtures on this. There was no lawsuit involved. We received a 1099 MISC with Box 3. It technically is not income, as a portion of this will be used to fix the errors. We have not fixed it yet as we are living with it until we have to. Is it true that I have to pay taxes even though it was due to the builder having incorrectly installed items on my house? I have a letter from the builder stating what the check was for.
