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Can I deduct court judgments?

 
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Vanessa A
Employee Tax Expert

Can I deduct court judgments?

Court judgements you paid?  If so, for what?

 

It depends on what it is for.  If it was a judgement against your business where you had to pay a subcontractor for work he performed that you didn't like so you didn't pay for, then yes, that would be deductible.

 

If you were sued because someone tripped and fell on your sidewalk and had to pay their medical expenses, then no, you cannot deduct the court judgements. 

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