<title>Re: Lawsuit Settlement with 1099 MISC</title>
<link>
https://ttlc.intuit.com/community/taxes/discussion/re-lawsuit-settlement-with-1099-misc/01/1549463#M552963
</link>
<description>
<P>if the suit <STRONG>is not related to the plaintiff's trade or business,</STRONG> there may be no write-off for legal fees or costs. That means you are taxed on 100% of your recovery. Examples of settlements facing tax on 100% include recoveries:</P><P>From a website for invasion of privacy or defamation;<BR />From a stock broker or financial adviser for bad investment advice, unless you can capitalize your legal fees;<BR />From your ex-spouse for claims related to your divorce or children;<BR />From a neighbor for trespassing, encroachment, etc;<BR />From the police for wrongful arrest or imprisonment;<BR />From anyone for intentional infliction of emotional distress;</P><P> </P><P>thus the taxes on the $8000 could exceed the $1000 you netted. did the attorney explain this to you? </P><P> </P>
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<description>...</description>
<pubDate>Wed, 29 Apr 2020 06:41:56 GMT</pubDate>
<guid>
https://ttlc.intuit.com/community/taxes/discussion/re-lawsuit-settlement-with-1099-misc/01/1549463#M552963
</guid>
<dc:creator>Anonymous</dc:creator>
<dc:date>2020-04-29T06:41:56Z</dc:date>