Is construction defect litigation settlement taxable?
HOA board settled construction defect litigation and will be using the settlement to fix the defect. Is the settlement $ taxable? If so, at what ~rate?
3 Attorney Answers
Best Answer
Generally speaking, no. Lawsuit settlements that are to replace or repair damaged items not considered taxable income. Always consult with a tax professional if you have specific concerns.
Best Answer
consult a tax professional or tax attorney.
Best Answer
You should consult a tax professional but generally speaking the money is to repair defects and not an income.