Karen Lee Posted February 18, 2008 Report Posted February 18, 2008 Usually legal fees are deductible for some sort of revenue generation practice. This client has legal fees were to settle a worker's comp claim for total and permanent disability which was granted. Since the payments are not taxable then I believe the attorney fees are not deductible. Too much thinking for today. What do you think and where would I deduct? Schedule A somewhere? Thanks - set me straight Karen Quote
Booger Posted February 18, 2008 Report Posted February 18, 2008 Karen, I believe that since the legal fees were incurred to get non-taxable proceeds (W/Comp Insurance), they would be non-deductible. Booger Quote
kcjenkins Posted February 19, 2008 Report Posted February 19, 2008 You are right, no deduction for them. Quote
Karen Lee Posted February 19, 2008 Author Report Posted February 19, 2008 Thank you for the responses. This client comes up with some doosies every year and I don't trust most of his information. One time he was right and I was wrong and I don't want that to happen again. Really wish he would try to do his own taxes since he knows so much and has me questioning myself. Thanks again Karen Quote
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