Brief explanation of my situation:
- In 2020 I sold a rental property.
- In 2021 the buyer sued me for non-disclosure of a previous mold issue. I hired an attorney to sue my real estate agent for not disclosing the mold issue. I had told my real estate to disclose it.
- In 2023 we finally settled. The real estate agent paid $130,000 to me from which I paid the buyer $65,000. So my portion of the settlement was $65,000. My attorney fees were $75,000.
- The real estate agent sent me a form 1099-NEC in the amount of $130,000.
My questions:
- Do I need to file a 1099-NEC in the amount of $65,000 and send to the buyer? I don't have the buyer's SSN or address.
- How do I record this in TurboTax? I received $130,000, paid the buyer $65,000, and paid my attorney $75,000. I assume this would go into Schedule E but I already sold the property in 2020.
