Looking4Ward
Full time employment: Posting here.
Earlier this year I had an attorney prepare and send a demand letter to a particular auto manufacturer for "Breach of Warranty". Long story short I had given them five opportunities to repair a defect under warranty and they couldn't.
After a couple of months of furnishing facts and negotiations, I accepted a total cash settlement of $8.5K for loss of value ($3K in attorney fees and net $5.5K to me). The amount is a fuzzy calculation of the difference between what I paid for the vehicle and what I would have paid for it had I known of the defect. In effect, returning a portion of the purchase price to me.
Do you think the auto manufacturer will send me a 1099 and I will have to pay federal income taxes on all or part of this settlement?
After a couple of months of furnishing facts and negotiations, I accepted a total cash settlement of $8.5K for loss of value ($3K in attorney fees and net $5.5K to me). The amount is a fuzzy calculation of the difference between what I paid for the vehicle and what I would have paid for it had I known of the defect. In effect, returning a portion of the purchase price to me.
Do you think the auto manufacturer will send me a 1099 and I will have to pay federal income taxes on all or part of this settlement?