RobertB4444
Expert Alumni

Deductions & credits

First, the person who received the settlement check would report it. 

 

Second, the amount that you received in excess of the expenses that it was paying for is probably taxable income.  So you would look at the amount that you received and deduct the cost of replacement that it was paying for and whatever is left over is what is taxable.

 

@sim8t3 

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