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dogduckfrog
Returning Member

are legal fees paid by business reimbursed by insurance taxable income

Our LLC paid legal fees which were later partially reimbursed by our insurance company.   I understand the legal fees are deductible since it was paid by the business defending a business interest.  My question is do I then report the insurance company reimbursement as income?  If so, how do I do that in TurboTax business?

2 Replies
martinmarks
Level 10

are legal fees paid by business reimbursed by insurance taxable income

Report that as Other Income......there must be an area for that in TT Biz.

ColeenD3
Expert Alumni

are legal fees paid by business reimbursed by insurance taxable income

Yes, since you are claiming an expense that was partially reimbursed, you must claim it as income to offset it.

 

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