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Do you pay taxes on settlement for lemon law settlement on a car?
Wiki User
∙ 15y ago
I tried to find the answer to this question, too.
After asking many friends, and googling for hours, I gave up - couldn't get a definite answer. Can anybody help? You will have to sign a W-9 for the settlement (or your attorney may sign it on your behalf). It is likely that a good accountant can adjust the basis for your settlement and you wouldn't owe anything, but technically, yes, it is income for tax purposes.
Wiki User
∙ 15y ago
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What is the Lemon Car law in Florida?
The Lemon Car law in Florida applies to new cars and it covers any defects that can affect the operation of a car. Any such defect must be reported with 2 years after purchase to be covered by the Lemon Car law.
What is the car lemon law in california?
Car lemon law in california provides compensation to California consumers of defective automobiles and trucks.
What are the high points of the car lemon law in Louisiana?
The car lemon law in Louisiana is a great law to protect consumers from bad car purchases. There are similar laws in many states.
How long does a lemon law for used cars last?
There is no such law as a "lemon law" on a used car. Lemon laws only apply to new cars.
What is the lemon law in Florida?
The Lemon Car law in Florida applies to new cars and it covers any defects that can affect the operation of a car. Any such defect must be reported with 2 years after purchase to be covered by the Lemon Car law.
Is there a lemon law on used cars with a warranty of 3 months?
No, the lemon law is not for used cars. It is for a new car you bought that is a lemon and a car that the dealer is unable to repair. Check with you state Attorney General for the details of your states lemon law.
What kind of protection does the California car lemon law offer to consumers?
The California car lemon law offers consumers protection against buying a faulty used car.
How do I know if my car qualifies under the automobile lemon law?
Car Lemon has a lemon law guide that includes state lemon law statues. It also gives tips and answers frequently asked questions about lemon laws. Go to your state Department of Transportation for reliable information about lemon laws. Your state DOT will provide the info you need to figure out if your car is legally designated as a lemon.
What is the car lemon law for?
The car lemon law was put into effect in order to help protect consumers. Lemon laws exist so that a car dealership may not knowingly sell a car to a consumer that has known issues without first telling the customer about them.
What is the lemon law and how is it used?
The lemon law is a law protecting car buyers from used car purchases. If a vehicle is not as reliable as it is represented, the buyer has certain legal rights to pursue if they choose to do so.
You receive a settlement from a law suit Is that income subject to Federal or State income taxes?
It depends what the issue of the case is about. If the settlement is in a personal injury lawsuit, there are no taxes. This money is strictly compensation for physical injuries. If the settlement is for back-pay or loss of income lawsuit, then there probably will be taxes.
What does the auto lemon law protect me from?
The auto lemon law protects consumers from buying defective automobiles. Cars that for whatever reason just don't work right. If you buy a car and there are nothing but problems with that car from the beginning this would be when the lemon law applies.
