Several years ago, client had some extensive engine "repairs" done to a vehicle used 100% in his Sch C business. Took repairs expense in the year this occurred. A short while later, the engine basically died and client found out the repair shop never really fixed anything. He took legal action and last year they finally settled out of court.
Since the expense originally reduced his business income and SE tax, would the amount of the settlement go on Sch C as other income subject to SE tax? Thanks.
Since the expense originally reduced his business income and SE tax, would the amount of the settlement go on Sch C as other income subject to SE tax? Thanks.
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