We bought our house over a year ago, once we moved in we realized a lot of things that were stated int he purchase agreement were not done or done incorrectly. The seller lied on the purchase agreement and then gave us fraudulent receipts which violated our agreement. Anyways we bout the house thinking things were up to code and professionals did the work so we payed the amount he listed the house for and later found out it was not done. We we went to arbitration with our evidence and he ruled in our favor. We were awarded a small sum to help us repair the damages. Is this award taxable? We payed a higher price on the house thinking these things were done but were deceived by the seller. The amount was under 10,000. I've been trying to find a straight answer online and haven't. It sounds like if the award is under the amount you bought the house for (which it is well under) then it's not looked at as taxable income. Please help me answer this.
