Attorney and settlement fees in discrimination case

Apr 06, 2013 1 Replies

Taxpayer owns two family rental property and was sued for discrimination by a prospective tenant...and lost. Attorney fees were $7500. and the settlement was $25000. Are any of these deductible?


prospective tenant...and lost. Attorney fees were $7500. and the settlement was $25000. Are any of these deductible?

You can deduct the attorney fees and the settlement on your Schedule E. However, if any part of that $25K was a penalty or fine paid to a government, that part would not be deductible.

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