I just won a $50k lawsuit settlement. An interested party is my rental LLC. I've read that not all legal fees are tax deductible from a personal side but I'm wondering if they are since I paid them from my LLC?
So first question is it better to claim through the LLC Schedule E or me personally?
Second, I believe the money is taxable under a 1099-MISC. Am I going to be given the money with a Box 3? I ask because TT does not allow me to enter a 1099-MISC Box 3 "other income."
Or do I have to claim as personal income and reimburse the LLC for the amounts paid thus no legal fee write off? Please advise.
