Does a court settlement awarded due to breach of contract and civil theft taxable?

[Mima]

The settlement states Final default judgement ..reading in into the settlement it states , material breach of contract on a construction of building a home and Civil Theft The plaintiffs( my clients besides the amount awarded they were also entitled to reasonable attorney fees paid and court cost against the Defendant. Is the full amount awarded taxable. Or does any one have a reference of an IRS publication were I can get information on taxable Court settlements???

Appreciating any help I can get...

[abctax55]

Personal injury settlements are not taxable.  Your fact pattern indicates taxable.  As for cites, sorry...try google.

[abctax55]

5 second search:

https://www.forbes.com/sites/robertwood/2019/07/01/five-key-irs-rules-how-lawsuit-settlements-are-ta...

[BobKamman]

A default judgment is not a settlement.  Have they actually collected any of this?  Did this involve their own home, or one that they were going to sell or rent out?  

Damages for loss in value of property that are less than the adjusted basis of your property are not taxable and generally do not need to be reported on your tax return. However, you must reduce your basis in the property by the amount of the settlement.

You can try IRS Pub 4345.