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Settlement Paid in Exchange for Property: 1099-S or 1099-MISC?
October 15, 2026
Q. I work for a city and we recently paid $300,000 to settle a dispute over property. The settlement agreement called for the other party to convey certain property to the City and, in exchange, the City would pay the $300K. I am confused as to whether this warrants a 1099-S (because we’re receiving property) or a 1099-MISC (because this is a legal settlement). The payee is an LLC partnership. The City paid the other party directly instead of paying to/through an attorney. Can you please…
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