A client received a $25,000 award from a lawsuit against her mortgage company. Her mortgage balance was also reduced
by $25,000. IS this taxable and if so; what do I do with it?
by $25,000. IS this taxable and if so; what do I do with it?
-
-
1040 ln 21Believe nothing you have not personally researched and verified. -
Seems like we would need more detail/facts
OP posted - "A client received a $25,000 award from a lawsuit against her mortgage company. Her mortgage balance was also reduced
by $25,000"
Was this award cash and also a reduction in mortgage balance? Or just an award that reduced her mortgage balance?
In connection with their personal residence or was it on Rental/Investment Property?
Attorney fees?
SandyComment
Comment