Poltax75
Level 3
07-24-2024
08:18 PM
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My Client's LLC received a mutually agreed court settlement for damages to property, mostly research results and documents, used in his business.
He received A 1099-MISC with the amount shown in line 3 (Other Income) $70k
He also has legal fees which were not covered by the settlement. This his specifically stated in the settlement
What is the best way to report this on Schedule C.
Best Answer Click here
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sjrcpa
Level 15
07-25-2024
09:45 AM
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The $70K is reported as part of the income.
The legal fees are deducted on the legal and professional services line.
The more I know the more I don’t know.
