The Taxation of Legal Settlements and the Deductibility of Associated Legal Fees - 0.2 CPE total practice real-world application

real-world application

specializing in individual and small-business tax compliance

amortization rules

Know When the Deductions Still Apply

The Taxation of Legal Settlements and the Deductibility of Associated Legal Fees - 0.2 CPE total practice real-world applicationNot Every Settlement Is Tax Free. Clients often assume that money received from a lawsuit simply restores what was lost and therefore shouldnt be taxed. In reality, the tax treatment of settlements depends entirely on the origin of the claim and the type of damages involved. This course explains how the IRS determines what portion of a settlement is taxable, what may be excluded, and how legal fee deductions can significantly affect the final tax