My question involves personal finance in the State of: California.
I had shares in corporation A.
I was also employed by corporation A.
There was a dispute between myself & another major shareholder.
I was then tricked to resign.
Corporation A then sued me, alledging that I had taken money without approval (which was actually back pay / salary that was due to me), and alledging that some corporate expenses were actually my personal expenses.
I made a settlement payment & surrendered my shares of stocks to the corporation.
Since the litigation is business related (it is business related dispute), and I had lost my employement & my shares, would the settlement payment be deductible on my personal income tax return? (I'm assuming that legal fees are deductible but I'm not sure whether the settlement payment is).