I received a "lemon" law settlement for $15,000 of which $10,000 went to the attorneys and $5,000 to me. The car was a lease and the auto maker would not take the car back at the end of the lease because of an issue with the battery. They had the new battery but still refused to take the car back. They would not let me buy out the lease and replace the battery. The "lemon" lawyer advised that I extend the lease for as long possible which according to my lease was 6 months on a month-to-month basis. I extended the lease three times but the dealership then called and said I had to bring the car in because they would no longer extend the lease. At that time the manufacturer refused to provide a new battery if I wanted to buy out the lease. I was without a car for several months and then had to pay a deposit on a new lease. How do I calculate how much of the 15,000 is taxable? Thank you
