I was a victim of a scam involving my rental property's mortgage loan, resulting in a monetary loss of over $10,000. I paid $1,500 to an attorney for suing the company, and later became a class representative in a class action lawsuit that awarded me a $1,500 check. I received a 1099-MISC for this amount. My questions are: 1) Do I need to report this as income and be taxed, even though it only recoups part of my loss and the attorney fee I paid? 2) If I do need to report it, how can I report it with my rental property since Turbo Tax doesn’t allow me to put in an income in a box other than rents? 3) If I do need to report it and can’t report under rental property, how can I make this not “taxable” as I don’t think it should be since I’m just recovering some of my previous loss.

June 27th, 2024

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