Deductions
“I had to pay a massive legal settlement to a former client who sued my business, are lawsuit settlements considered a deductible business expense?”
Whether a lawsuit settlement is deductible often depends on what the claim was about, how the payment was structured, and whether the underlying issue was tied to ordinary business operations or something more personal. In many cases, the tax treatment can also change based on legal fees, court costs, and whether any part of the settlement was allocated to damages, penalties, or other categories. The business records and settlement agreement usually matter a great deal, along with how the expense was booked in the company’s books and tax returns. Working through the specifics with a CPA is the cleanest way to land on the right move.
In your 60-minute session, the KGOB advisor handling it will:
- Read your exact situation and tell you, in plain English, what’s actually going on.
- Lay out your options and the trade-offs — no jargon, no judgment.
- Give you a clear next step you can act on, whether that’s with us or on your own.
“I incurred massive personal credit card debt to fund my struggling business, is the crippling interest I pay on those cards tax deductible?”
“Can I deduct my new home office using the actual expense method without immediately triggering a red flag audit from the IRS?”
“I bought a heavy luxury SUV primarily for my real estate business, how does the Section 179 vehicle deduction actually work for passenger vehicles?”
“I use my personal cell phone extensively for my freelance work, what exact percentage of my monthly phone bill is safe to write off?”
This page is a prompt to start a conversation, not tax or legal advice, and states no tax-law specifics as fact. A consult session does not by itself create an ongoing engagement. We do not promise specific outcomes or savings. Kohari Gonzalez Oneyear & Brown PLLC — Charlotte, NC.
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