[KidGlock]

This is a tough one.

Who do I want to profit less from lawsuits, lawyers or the government?

[yobid]

Who do I want to profit less from lawsuits, lawyers or the government?

What's the difference?

[babygene]

I have a problem with this, in that if the total is considered income, then the cost of earning that income should be deductible. The cost of earning this income is the lawyer fees...

Just as I would not pay tax on gross receipts of a lawn business (if I had to rent the equipment, or paying an employee - I would get to deduct the cost of doing business),

In this case, the lawyer is my employee. I would send the law firm a 1099, and deduct it as a business expense.