Q: Am I able to write off in my taxes the amount i paid to settle a lawsuit in mediation against me?
Am I able to write off in my taxes the amount i paid to settle a lawsuit in mediation against me?
A:
Yes, if that was for your business. Also, look at the causes of actions on the complaint. If there are 4 of them (for example) and the settlement is for 2 cause of actions then the IRS tries to limit your deduction, so make sure the settlement paperwork states the settlement is for the deductible causes of actions.
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A: It the settlement was for you business, the mediation fees would be considered your legal fee as well and deductible.
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