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posted Jul 9, 2020 11:01:33 AM

Can a money paid in a judgement that was filed against a failed LLC, in which I was held personally responsible be deducted?

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1 Replies
Employee Tax Expert
Jul 12, 2020 5:23:42 PM

Yes, if the basis of the suit was a business matter, rather than personal. 

 

Those amounts cannot include fines or other penalties. Legal fees are also deductible. Again, if the issue has arisen due to acts performed in the ordinary course of business.