Are contingency fees for injury lawyers tax deductible as a business expense if my LLC has to pay a settlement resulting from a car crash?
Download run
Fan-out diagram
The searches the AI actually ran for this prompt.
SEED QUERY
Are contingency fees for injury lawyers tax deductible as a business expense if my LLC has to pay a settlement resulting from a car crash?
2 real searches · 1 real-search pass
IRS business expense deductibility legal fees settlement payments car accident business ordinary necessary expense Section 162 punitive damages 162(f)Google ↗
OBSERVEDReason
IRS Publication 535 legal and professional fees business expenses settlements damages deductibility business liabilityGoogle ↗
OBSERVEDReason
Badge and edge weight = share of passes that produced the query. Hover a query for its intent and routing format.
Query classes
Google's semantic query class for every sub-query: what kind of answer each search is after, simulated vs real.
ChatGPT real searches (2)
Classes come from the query-classifier (a local Laya model). 2 of 2 calls are low-confidence (under 50%) — hover a query in the table to see its confidence.
Searches and sources
ChatGPT2 real searches · gpt-6
IRS business expense deductibility legal fees settlement payments car accident business ordinary necessary expense Section 162 punitive damages 162(f) Google ↗
IRS Publication 535 legal and professional fees business expenses settlements damages deductibility business liability Google ↗
- 26 U.S.C. § 162 · law.cornell.edu
- Publication 334 · irs.gov
- uscode.house.gov · uscode.house.gov
- Publication 334 (2025), Tax Guide for Small Business · irs.gov
- 26 CFR § 1.162-1 - Business expenses. | Electronic Code of Federal Regulations (e-CFR) | US Law · law.cornell.edu
- Tax Issues in Litigation: Treatment of Judgment and Settlement Payments and Deductibility of Legal Expenses · d27r7ebsgu0es2.cloudfront.net
Queries
2 queries · click a column to sort
| Query / type | Search | Intent | Query class | Routing format | Cluster | Freq ↓ | Weight |
|---|---|---|---|---|---|---|---|
IRS business expense deductibility legal fees settlement payments car accident business ordinary necessary expense Section 162 punitive damages 162(f) OBSERVED | Google ↗ AI Mode ↗ | — | Reason | — | — | 1x of 1 | |
IRS Publication 535 legal and professional fees business expenses settlements damages deductibility business liability OBSERVED | Google ↗ AI Mode ↗ | — | Reason | — | — | 1x of 1 |