My Lemon Law settlement was broken down to me as follows.
- client
restitution (repurchase of vehicle and refund of all payments, loan payoff, and
mileage waiver)
- bonus
payment (civil penalty)
- attorneys'
fees & costs
The civil penalty was then broken down with 1/3 going to the attorney.
Finally a total for the attorney and a total for me.
How much of this will be taxed?
Can I claim the attorneys fees? If so is the 1/3 of the civil penalty included in this? Or am I taxed on the full civil penalty award?
What version of Turbo Tax will be needed to cover this?
Thank you
