Legal Cost

Collapse
X
Collapse
 
  • Page of 1
  • Time
  • Show
Clear All
new posts
Previous template Next
  • Skeemo
    Member
    • Nov 2005
    • 39
    #1

    Legal Cost

    A retiree was sued over a dispute from a former business he owned. Though he didn't feel he was liable, he paid $5,000 to "make it go away". Can he deduct this now on a Schedule A? If so is it subject to the 2% of income exclusion?
    Tags: None
    • Chief
      Senior Member
      • Jun 2005
      • 799
      #2
      lawsuit

      Yes. It appears so.

        Comment

        • veritas
          Senior Member
          • Dec 2005
          • 3290
          #3
          Why would an expense related to a business become subject to the 2% limitation. I would think it would still be a above the line business loss.

            Comment

            • S T
              Senior Member
              • Jun 2005
              • 5053
              #4
              Legal and Business

              If business related, I agree why would it be subject to 2% misc. on Schedule A.

              Sandy

                Comment

                Previous template Next

                Disclaimer

                Collapse

                This message board allows participants to freely exchange ideas and opinions on areas concerning taxes. The comments posted are the opinions of participants and not that of Tax Materials, Inc. We make no claim as to the accuracy of the information and will not be held liable for any damages caused by using such information. Tax Materials, Inc. reserves the right to delete or modify inappropriate postings.

                Working...