Biz Write-Offs LogoBiz Write-Offs

Legal fees for a lawsuit

$5,000-$500,000

Can You Write Off Legal Fees for a Lawsuit?

Short answer: Yes if the suit arises from your business operations; personal lawsuits aren't deductible.

Damages paid can also be deductible, but fines paid to a government never are.

Records to keep: Keep receipts or invoices, proof of payment, and a short note of the business purpose.