2007-01-30 11:28:53 · 3 answers · asked by swoods213 1 in Business & Finance ➔ Taxes ➔ United States
Legal fees can be deducted only to the extent of the settlement that is in relation to taxable income. In settlements that are in relations with lost income. If you received 100,000.00 and 40,000 was for lost wages. you could only claim 40% of the legal fees as an Itemized deduction on the Schedule A. these are subject to a 2% of your AGI So you would want to take into consideration whether the standard deduction would be more than you total itemized deductions including mortgage Interest, real estate taxes, medical expenses that exceed 7.5% of your AGI.
Pubication 529
2007-01-30 11:37:25 · answer #1 · answered by Anonymous · 1⤊ 0⤋
No, you cannot. Personal expenses, including attorneys fees, are not deductible.
The only time you can write off lawyer fees is when it is a business expense.
2007-01-30 11:37:57 · answer #2 · answered by Anonymous · 0⤊ 1⤋
Only if the fees are for tax advice or tax return preparation. Attorney's fees other than that are not deductible.
2007-01-30 11:32:59 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 1⤋