Hey All,
Currently in a lemon law case and was offered a settlement. I know that the excess funds from the vehicles price is taxable, but I'm trying to get a good understanding of how much I should put aside for taxes.
Hypothetical situation:
Original Car Value: $45,000
Settlement Amount: $90,000
Attorney's Fees: $20,000
When determining the taxable income would it be $45,000? or would it be $20,000 due to the lawyer taking their cut? Thanks in advance!
