Does a unenforceable $5000 small claims judgment qualify as a deduction if I take standard deduction?

1 reply
203 views

No text available

TurboTax Online

DaveF1006

Alumni - Intuit

No, you cannot deduct a small claims judgment regardless of what deduction you take. You can however, deduct the court costs of obtaining the judgment if you are a landlord and report your rental properties on Schedule E.

Step 1: Go to the Rental Properties and Royalties section.

Step 2: Click Edit next to the specific property associated with the tenant.

Step 3: Select Add Expense (or Start/Update next to Expenses).

Step 4: Look for the category Legal and Professional Fees.

Step 5: Enter the total amount paid for filing fees, service of process, and any attorney consultations.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Does a unenforceable $5000 small claims judgment qualify as a deduction if I take standard deduction?

1 reply

Unlock tailored help options in your account

Get answers to all your tax questions

Unlock tailored help options in your account

Get answers to all your tax questions

Sign up

Login with SSO

Let's get you signed in

Login with SSO