Are legal fees for attorney tax deductible?

Tax deductible attorney fees?

  • What type of attorney / legal fees are considered tax deductible? Thanks!

  • Answer:

    Attorney's fees may be deductible if they are directly related to the production of income. For example: Years ago, I had a client that had to sue a major retailer for her severance package. Her legal fees were deductible as they were directly related to the severance package which was taxable. Most legal fees (property, civil, criminal) are not deductible.

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Basically, they need to be for advice that helps or is intended to help produce taxable income

Judy

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