Mbetanco
Level 1
Form 1099-Misc, box 3 $73,75.96
Actual money received in a check $50,625.50 
Attorney fees $23130.50
0 Cheers
Just-Lisa-Now-
Level 15
Level 15
Hopefully they didn't spend it all and can pay the taxes on that 73k.

TCJA took away the ability to deduct most personal legal fees.

https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/can-i-deduct-legal-fees-on-my-taxes/...

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Terry53029
Level 14
Level 14

Don't forget only the amount over the price of the car is taxable, and as Lisa  said the attorney fees are not deductible

taxes96786
Level 9

Make an adjustment on the Actual Money received line to subtract the amount the client is out of pocket (originally paid for the car).

0 Cheers
BobKamman
Level 15