Tax,
Civil Litigation
Sep. 24, 2019
Purdue settlements and others as tax deductions
In America, litigation and lawyers are costs of doing business. Businesses can and do deduct their legal costs. And in most cases, when they have to pay out settlements, those are deductible business expenses too. That seems obvious, but aren’t their exceptions?
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.
In America, litigation and lawyers are costs of doing business. Businesses can and do deduct their legal costs. And in most cases, when they have to pay out settlements, those are deductible business expenses too. That seems obvious, but aren't their exceptions?
Yes, there are a few. Starting in 2018, under the so-called Weinstein provision, defendants cannot deduct legal fees or settlement payments that dispose of confidential sexu...
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