Contracts
Jun. 25, 2010
Which Client Costs Are Tax Deductible?
How you draft your fee agreement affects tax treatment and how much money you ultimately recover, says Robert Wood of Wood & Porter.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
How you draft your fee agreement clearly matters in the 9th Circuit. However, this should matter everywhere. It effects tax treatment and how much money you ultimately recover. Consider the following examples: The first three examples are all common (although Example 2 is less common than Examples 1 and 3).
Example 1: You take a case on a 35 percent contingency, with costs to be subtracted from your gross recovery. You recover $1,000, ...
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