Which of the following legal expenses paid by the Sutton Corporation can be deducted in the current year?
I.Legal fees to initiate a lawsuit against a competitor who is using its patent.
II.Legal fees to settle a lawsuit filed by a delivery person who slipped on the ice delivering a package to Sutton's office.

Question

Which of the following legal expenses paid by the Sutton Corporation can be deducted in the current year?
I.Legal fees to initiate a lawsuit against a competitor who is using its patent.
II.Legal fees to settle a lawsuit filed by a delivery person who slipped on the ice delivering a package to Sutton's office.
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Quizplus · Accepted Answer

Both legal expenses are deductible. Legal fees to protect or defend a business's legal rights, such as a patent, are deductible. Similarly, legal fees related to business operations, like settling a lawsuit from a delivery person's injury on the premises, are also deductible.

Which of the Following Legal Expenses Paid by the Sutton