Apologies for length. In 2018 I won a legal settlement arising from my eviction from my home/studio. Not a passive claim, all administrative, store equipment and editing done there. I ended up moving 30 miles away from majority of my client base.
My business is creating legal presentations for trial and mediation. For tenants rights lawyers. Represented by my client's firm AND working for them simultaneously. BUT not being paid for my services. My work greatly exceeded the normal, including hiring/supervision of 3rd party providers, whose findings were key.
I'm not seeking to deduct legal fees. Prin/Agent issues aside, can I deduct 20% pass-through on the initial payment? Received 60%, then 40% over 5yr. structured. (tax paperwork filed and will be paid each year they're incurred). I've had several accountants and CPA's refuse me as a client bc/ too complicated or new reform law too much. Any help appreciated!