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    #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?
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    #2
    lawsuit

    Yes. It appears so.

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      #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.

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        #4
        Legal and Business

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

        Sandy

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