QUESTION
How can a doctor deduct a settlement payment?
Asked on Nov 22nd, 2013 on Taxation - Michigan
More details to this question:
Doctor performed a surgery to remove a toenail for a patient. And as a gross negligence, he removed the entire toe. The patient sued him and settled out of the court for $100,000. Doctor paid the $100,000 without an insurance claim. How can he deduct the $100,000?
2 ANSWERS
Business/ Commercial Attorney serving Bellevue, WA
at
Lana Kurilova Rich PLLC
Update Your Profile
Depending on the terms of the settlement agreement, this may not be deductible expense, actually. Consult with an attorney to get a definitive response.
Answered on Nov 27th, 2013 at 9:12 AM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
Update Your Profile
Most probably yes, it is a business expense, just like insurance premiums.
Answered on Nov 26th, 2013 at 9:10 AM