Thanks so much for your response. Sorry I wasn't more clear about the expenses. They were not to resolve a tax issue. A buyer defaulted on a contract to purchase my home. I had moved out in anticipation of the closing date so I had expenses to maintain two residents and store my furniture, non-refundable mortgage related expenses for a new place I had under contract and lost because of the buyers default. In addition the defaulted buyer sued me because I wouldn't release the earnest money to him. This dragged on for two years and I had to travel out of state 3 times to attend court. The judge ordered him to reimburse most of my expenses. Now I have a W9 showing them as income. Do I pay income tax on the reimbursed (non legal) expenses. When I paid for them it was money I had already paid income tax on when I received the distribution from my IRA.
Thanks for your help. This has caught me by surprise
