Lawsuit settlement payments
Varies
Can You Write Off Lawsuit Settlement Payments?
Short answer: Usually yes when the claim arose from the business.
Settlements of sexual harassment claims subject to a nondisclosure agreement aren't deductible, and neither are government fines.
Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.
BW-B22-00686
medium risk
Lawsuit settlement payments
Varies
General Business
Professional Services
Business Write-Off Questions
Usually yes when the claim arose from the business.
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Usually yes when the claim arose from the business. Settlements of sexual harassment claims subject to a nondisclosure agreement aren't deductible, and neither are government fines.
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- Business Write-Off Questions
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