@RobertG I received a settlement of $20,300 on a lemon law lawsuit. My cost of the vehicle was $34,200. So, if I do it as you are suggesting, would that confuse the IRS? I put the $20,300 in the 1099-MISC, and under the Miscellaneous Income, I put -$20,300. It zeroed out the amount due, but I am concerned that it might trigger the IRS to wonder what's up. I also did not get anything from the manufacture except the stub showing they paid me. I also did not enter the original cost of the vehicle being $34,200 anywhere to show offset. Any help would be great.
