Exxon Class Action Award 2nd Question

[Perren]

s About Taxes)/exxon class action award 2nd question Advertisement Expert: John Stancil, CPA - 12/23/2005 Dear Sir;

Thank you for answering my previous question.

I would also like to know then if I am liable for taxes on the entire amount of my award, or only for what I receive after the lawyers fees have been taken? Also since I am no longer in the busines, does that preclude me from claiming their fee as a business expense? Thanks very much for your help, and Happy Holidays.

Chris Greentree

[Eker]

Chris,

If you cannot deduct the attorney fees as a business expense, you would be liable for taxes on the entire amount.   

In regard to the second part of your question.  The short answer would be, no.  Not being in the business does not preculde you taking the fee as a business expense.  However, I would need to know more about your situation, more than could be reasonably handled in this context before I could give you a definitive answer.

Hope this helps.

John Stancil, CPA