Hi -- a sprinkler went off in a unit I was renting, causing enough damage that I had to settle with a collections company for $12,500. The corporation that owned the rental unit wouldn't pay, and we had lawyers involved for almost 2 years. Finally I settled. Can I claim the $12,500 in any way on my Federal Taxes? The sprinkler we believe went off by mistake, but through the process of it getting reset, all evidence was removed. It wasn't part of any "disaster", as we believe it malfunctioned. I paid the collections company in 2024, so hoping there is a way to claim on my taxes.
