PERSONAL PAYMENT ON CONSTRUCTION DEFAULT LAWSUIT

[bookwor90]

SOLE OFFICIER OF CORP CONSTRUCTION WAS ORDERED TO PAY DAMAGES IN COURT ORDERED SETTLEMENT LAWSUIT.  CORPORATION AND INDIVIDUAL WERE BOTH NAMED IN SUIT.  IS THIS SETTLEMENT AMOUNT DEDUCTIBLE ON PERSONAL 1040 TAX RETURN?

THX JEAN

[Opus 17]

No. Personal legal expenses (attorney, etc) are not deductible for 2025 because that deduction was removed for 2018-2025, and settlements for personal wrongdoing are never deductible on a personal tax return.

The settlement may be a deductible business expense even if the officer was directed to personally pay it, but you should talk to your own professional tax advisor. 

[bookwor90]

thanks for info'