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.
BW-B22-00685
medium risk
Legal fees for a lawsuit
Typical range: $5,000-$500,000
General Business
Professional Services
Business Write-Off Questions
Yes if the suit arises from your business operations; personal lawsuits aren't deductible.
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
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.
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