JosephS1
Expert Alumni

After you file

The payments that are actually for the rent in arrears would be a deductible expense; provided you are a cash basis taxpayer and not an accrual basis taxpayer and previously deducted the rent due.  Penalties assessed, if any, would not be deductible.

 

Legal fees paid due to the lawsuit may also be deductible if it can be proven that they were paid for the protection of income.

 

@chantellemoline 

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