Is a permitted settlement we rec'd re our surety deposit discount taxable?
We sued our landlord end year for retaliatory eviction after we reported him to LA Bldg/Saftey which turned into a nightmare lawsuit in LASC. We later went thru the required mediation process and agree to settle for $3300.00, the amount of sec dep compensated on 2002, plus $100.00. We just rec'd a1099 from the innkeeper with individual the $3300 listed as "other income". No one told us to expect this and research so far seem to say it have to "replace" something (i.e. wages) to make it non-taxable. We rewarded him this money as security when we initially moved within to the property in '02. Lawsuit included "intentional touching distress" as one of the claims as my husband is a disabled veteran. If anyone has any clues your help out is greatly appreciated. Thank you.Answers: I'll take a stab at this since not a soul else has answered it but you may want to report this surrounded by the tax nouns for a more knowledgeable answer.
My answer would be that this is not taxable income as it is not income received. If I am reading the statement correctly, you initially compensated a security deposit of $3200 to your proprietor in 2002 as a surety deposit. As a settlement for the lawsuit you agreed to the initial $3200 you paid as a financial guarantee deposit plus $100 making the total amount received $3300.
As the original $3200 be money paid by you to the tenant it was not income when it be returned to you, it was newly a return of your money. The $100 was income as this be money you had received as a settlement.
Now if you have already received your $3200 previously, and this was an more $3200 then yes, it is taxable income.
As I said, the levy area may carry you a more definitive answer.
Good Luck!
Are you considering buying a home surrounded by So Cal?
If you are, can you tell me the nouns of the country you're coming from and what would help variety your decision to move?Answers: Coming from Pennsylvania, I would love to move near, but the cost of living and homes is way out of my make.
I am looking for a preforeclosure houses , Pl let me know if there is/are any free sites online.?
Answers: You can find preforeclosures on sites like foreclosure.com or realtytrac.com. These sites charge for the details (like the specific address!) If they list the defendant you can try looking them up in the white pages, but the owner of the home may not actually live there (rental property).
Or you can go through your local newspaper in the legal notices section. When a lender begins a foreclosure they make a public record of their intent to sue (lis pendens). Check your county ‘s website, they might make this list available online too. This will have the property address, lender, defendants in the notice.
Watch out for realtytrac. I looked up houses on there last year. Paid the "joining fee" and then went and looked at some of the houses in my city. THEY WERE COMPLETELY DIFFERENT FROM THE PICTURES and most of them weren't even in any kind of forclosure process. I wouldn't trust Realtytrac.