cancel
Showing results for 
Search instead for 
Did you mean: 
Level 3

Court Settlment on Investment Property

I purchased a property in 2004.  Home was built in 2000; I purchased it from the original owner as an investment property.

 

There were some issues with the way the home was built. A suit against the builder was finally settled, and I received a check for several thousand.  

 

Is this taxable income? if so, how do I report it?

Or perhaps this just changes the basis of the property? If so, how do I report it?

 

Thanks in advance

1 Reply
Highlighted
Level 8

Court Settlment on Investment Property

I think you need to review IRS publications on casualty losses and gains, court settlements and awards to answer this question.