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Old 02-03-2007, 06:14 AM
Seth Breidbart
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Default Re: are legal judgements/settlements deductible?

George <gbeccles[at]gmail.com> wrote:

- quote -

> We are in a complicated dispute over an old hospital bill.
> We will end up paying something, though it's not at all
> clear how much. If we pay now, I assume it would be a
> deductible medical expense. If they went to court and got a
> judgement against us, would that payment still be
> deductible?
> Would it be different if we 'settled' with them after they
> filed their claim?


It seems to me that what you pay the hospital is a medical
expense.

If it goes to court, and the judge rules "Pay the hospital
$5000, pay $1000 court costs, and pay the hospital's lawyer
$10,000" then only the $5000 to the hospital is a medical
expense.

Seth

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 
Old 02-02-2007, 11:17 PM
Paul Thomas, CPA
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Posts: n/a
Default Re: are legal judgements/settlements deductible?

"George" <gbeccles[at]gmail.com> wrote

- quote -

> We are in a complicated dispute over an old hospital bill.
> We will end up paying something, though it's not at all
> clear how much. If we pay now, I assume it would be a
> deductible medical expense. If they went to court and got a
> judgement against us, would that payment still be
> deductible?
> Would it be different if we 'settled' with them after they
> filed their claim?


It all sounds like a medical expenses, with exceptions for
your legal costs, so deduct away if you have to pay
something.

--
Paul Thomas, CPA
paulthomascpapc[at]bellsouth.net

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #-1  
Old 02-02-2007, 05:32 AM
George
Guest
 
Posts: n/a
Default are legal judgements/settlements deductible?

We are in a complicated dispute over an old hospital bill.
We will end up paying something, though it's not at all
clear how much. If we pay now, I assume it would be a
deductible medical expense. If they went to court and got a
judgement against us, would that payment still be
deductible?

Would it be different if we 'settled' with them after they
filed their claim?

Thanks,
George

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 

Tags
deductible, judgements or settlements, legal
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