`
cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
New Member

Delete This question please.

 
1 Best answer

Accepted Solutions
Highlighted
Level 12

Delete This question please.

You've really not provided enough information here to allow anyone to answer with a "yes" or "no."

If you had been paying "her" properly all along, such that the lawsuit wasn't necessary if the first place, would the amounts be deductible to you?  Like maybe salary or wages against business income?  If so then the amounts you are paying her probably are deductible now and the amounts would be some sort of "income" to "her."


Tom Young

View solution in original post

3 Replies
Highlighted
Level 12

Delete This question please.

You've really not provided enough information here to allow anyone to answer with a "yes" or "no."

If you had been paying "her" properly all along, such that the lawsuit wasn't necessary if the first place, would the amounts be deductible to you?  Like maybe salary or wages against business income?  If so then the amounts you are paying her probably are deductible now and the amounts would be some sort of "income" to "her."


Tom Young

View solution in original post

Highlighted
New Member

Delete This question please.

Thanks Tom. It was a personal lawsuit to recover monies from my late fathers estate. She authorized the funds to be moved to myself and sister through her POA. (Don't ask, it was really screwed up and we got lousy estate advice.) She came back 6 months later after a couple of rough surgeries and suddenly wanted the money back. Calling us all sorts of bad names. Three years later and we reached a settlement.  No is it not related to job or employment, so I am gathering all this money I am paying her is just gone.
Highlighted
Level 13

Delete This question please.

Settlement payments of personal (non-business) lawsuits are not deductible.  The defendant must issue a 1099 to the plaintiff if the settlement is taxable.  (Ask your attorney if the settlement is taxable.)  If the defendant had liability insurance coverage, the insurer sometimes takes care of the 1099.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.**