Are attorney fees tax deductible for civil lawsuit?
Monday, November 9th, 2009 at
10:41 am
I am the plaintiff in a lawsuit and have a judgment against the defendant. However, I am now out of money and can’t afford to hire an attorney to force the collection. Our judicial system is screwed up. Can I get a tax deduction buy medicine online without prescription on attorney fees that total K? Even though I won my case, no one enforces payment. Not only did I lose K through fraud, but also the K for attorney fees. My tax man says it is not deductible because it is a collectible judgment, even though I will never collect. Is this right? Any ideas?
Well I am a former tax auditor, and I have never once heard of anybody but a corporation being able to deduct attorney fees.
Wait did you bring the suit as part of a business expense? If so you definitely can deduct it.
I can advise you you report the judgement regularly to the credit bureaus. I would not bother to spend money on collection. From personal experience nobody can help you with that.
Ask your tax accountant. It might be deductible. Or, call the IRS hotline.