I help people recover funds that were due to them from either a tax sale overage or a mortgage foreclosure overage. I collect anywhere from 25 to 40 percent as a finder's fee and use attorneys to handle all of the paperwork. I have a client in Delaware that wants to know if they have to pay taxes on this money. In this case, it is his parents who passed away, and the house was sold at tax sale. The county is holding nearly $35,000 that was owed to his parents. I found the money, and we are about to enter into a contract. He wants to know if he has to pay taxes on these funds (whole amount or just his portion of 60 percent). According to the county, he is the RIGHTFUL owner of this money. It will be distributed to the attorney, and she will keep her portion and cut checks to my company and the client. What is the tax burden? Also, would the tax burden change if my client was the previous owner?