You will have to review your legal settlement to determine how, if at all, it changes what the general rule is in situations where a home (in your case an RV) is sold at a loss. There could be something in how the legal settlement was structured that might affect how you report this transaction and whether you can deduct a loss. We are not in a position to review your legal settlement which is why we suggested you might want to review it with your personal tax advisor.
@Kimmie18
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