Lien as income?

[mateo87]

What is the name of your state (only U.S. law)? Illinois

Quick question - I performed work for a client this year and was never paid, and filed a lien on their property. Can I claim the lien amount as income, and deduct my expenses associated with that job, or only deduct the expenses, or neither because I haven't actually received the money?

 

[LdiJ]

What is the name of your state (only U.S. law)? Illinois

Quick question - I performed work for a client this year and was never paid, and filed a lien on their property. Can I claim the lien amount as income, and deduct my expenses associated with that job, or only deduct the expenses, or neither because I haven't actually received the money?

The lien isn't income until or unless you actually collect on it. However the expenses associated with that income are still legitimate expenses that can be deducted now.

 

[mateo87]

Thanks for the clarification