Tax,
Civil Litigation
Mar. 9, 2018
New tax law’s plaintiff tax: No deduction for legal fees
Many plaintiffs will face higher taxes on their lawsuit settlements under the recently passed tax reform law.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
Many plaintiffs will face higher taxes on their lawsuit settlements under the recently passed tax reform law. Some will be taxed on their gross recoveries, with no deduction for their attorney fees, even if their lawyer takes 40 percent off the top. In a $100,000 case, it can mean paying tax on $100,000, even if $40,000 goes to their lawyer.
The new law should generally not impact qualified personal physical injury cases, where the ...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In