Expert: Richard Stolp - 1/30/2011

Question
I owned an LLC dental practice that I sold in 2006.  I was sued by an employee in 2004 and finally settled with her in 2008.  Therefore, I continued to have expenses relating to this suit in 2007 and 2008 when I no longer had any income to offset it.  Can I move some of the expenses of this suit that I paid in 2007 and 2008 to 2006 when I still owned the business?

Answer
Sorry, you are a bit out of my expertise. I would assume you could file an amended 2006 return and pick up the expenses. However, there may be variables I am not familiar with - so I would recommend you call 800-829-7650 and ask the IRS for their best thinking. I would call at 7:30 am or so and see what they say, you'll have less of a wait early in the day.