Attorney Legal Fees Income Tax Question

by Jamie
(Louisiana)

Attorney Legal Fees Income Tax Question

Attorney Legal Fees Income Tax Question

I paid all the fees associated with opening and closing an estate for my dad because he dies intestate.

Can I claim those attorney's fees on my 2012 taxes? He had nothing other than clothing, etc.

We did a Disposition without Formal Administration so that we could get his personal property out of storage (he had cancer & was seeking treatment in another state so he stored all of his things) because legally the storage company couldn't release his property us without court documentation.

I paid the attorney's fees and funeral expenses on my own.

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ERISA Attorneys Fees

by Greg
(Cincinnati)

I was put on LTD in2006 due to my 3rd back surgery. While recouperating from third I suffered a stroke. Even though I received S.S.I. benefits my employer LTD cancelled my benefits. I sued and won. I received a lump sum payment. Are my attorney fees (1/3) deductible on my taxes..thanks

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Lawsuit Winnings

I need to know about lawsuit winnings. Is the money I received from a lawsuit taxable to me? If so, how do I go about claiming the lawsuit winnings on my tax return? Also, when should I claim the money received?

I am the process of going through a lawsuit right now and am trying to plan ahead thinking positive that I will win my case. If I am suing for money lost in a previous year but end up getting the winnings this year, which year should I claim the lawsuit winnings in?

Comments for Lawsuit Winnings

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Jan 20, 2024
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starstarstarstarstar 		Tax Treatment of Lawsuit Settlements
by: BB

Lawsuit winnings may be taxable, and how you claim them depends on the nature of the settlement. Here are some guidelines:

Taxable Nature of Settlement: If the lawsuit settlement involves compensatory damages for physical injury or illness, it's typically not taxable. However, if it includes punitive damages or compensation for non-physical injuries, it may be subject to taxes.

Reporting on Tax Return: If the settlement is taxable, report it as "Other Income" on your tax return. Use Form 1040 and provide a detailed explanation if necessary.

Timing of Reporting: Report the settlement in the tax year you receive the funds. If the lawsuit relates to money lost in a previous year, the year of receipt is the relevant tax year.

Consult a Tax Professional: Lawsuit tax implications can be complex, and consulting a tax professional ensures accurate reporting and compliance with tax laws.

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Legally Justifiable Income Tax Receipts

by Pramod
(Sikandrabad)

ACCORDING TO FORM 26AS DURING THE ASSTT. PROCEDING ASSESSING OFFICER FOUND THAT RECEIPTS OF RS. 450000 HAS NOT BEEN ACCOUNTED FOR THERE FORE ADDITION OF RS. 450000 WAS MADE TO THE INCOME OF THE ASSESSEE AS DISCLOSED INCOME ASSESSEE IS A CIVIL CONTRACTOR & TDS ON RECEIPTS 450000 HAS NOT BEEN ACCOUNTED FOR WHEREAS ASSESSEE'S RECEIPTS 5,32,70,445 & G.P. DECLARED 7.32% WHETHER ACTION OF A.O. IS LEGALLY JUSTIFIED..?

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