Are fees paid to collect on a judgment tax deductible?

[phileigh007]

Jurisdiction

New York

I head up a small judgment enforcement firm and recently commenced a wage garnishment for a very nice older couple. My clients, the creditors, were happy to see that the fee charged by the Sheriff was added to the total recoverable amount and wondered if my fee could be also. That is my question to you. As an Enforcement Analyst, can my fee be included in the wage garnishment of a debtor and/or is it tax deductible?

 

[Michael Wechsler]

The fees charged typically reduce the amount of the recovery.

 

[army judge]

I head up a small judgment enforcement firm and recently commenced a wage garnishment for a very nice older couple. My clients, the creditors, were happy to see that the fee charged by the Sheriff was added to the total recoverable amount and wondered if my fee could be also. That is my question to you. As an Enforcement Analyst, can my fee be included in the wage garnishment of a debtor and/or is it tax deductible?

You're always able to adjust your fees accordingly, or even do the work pro bono.
I regularly try to do that for people who are as you suggest, nice folk.