are legal fees a personal tax deduction?

Answer 1

Legal fees are deductible if, and only if, they are incurred in the process of seeking tax advice or if they are related to the production of income. Much the same as you can deduct the cost of tax prep services. They are deductible on Schedule A as a 2% miscellaneous itemized deduction.

A lawyer may prepare you tax return, or can represent you on an audit. Those legal fees would be deductions.

Fees you pay your lawyer to defend you in a criminal or civil proceeding would not be deductible.

Be careful on what you deduct, this can be a fine line that is easy to cross!

Answer 2

Legal fees are only deductible on an individual tax return if they are incurred and paid in the course of doing business (Schedule C).

Answer 3

In most cases, no, unless it is related to the conduct of your principal business. Some legal fees are deductible as Miscellaneous Deductions -- but are then subjetc to the 2% limitation. See IRS pub 529

Answer 4

Legal fees are generally tax deductible on your tax return if the dispute arose in the course of your business or employment or involves income producing property. The employment/income producing property legal fees are miscellaneous itemized tax deductions on your tax return and are subject to the 2% AGI floor. Legal fees for personal matters are generally not tax deductible on your tax return.

Legal Fees - Alimony

Legal fees to collect taxable income, such as taxable alimony (not all alimony is taxable), are tax deductible as miscellaneous itemized tax deductions on Form 1040, Schedule A. You should have your attorney divide his bill into:
non tax deductible divorce or separation charges;
tax deductible alimony charges (provided your alimony is taxable); and
charges relating to any property settlement which may be added to the tax basis of the property.

If you are paying tax deductible alimony you cannot deduct legal fees on your tax return for resisting or defending against your spouses/former spouses demands for alimony. Legal fees for disputes between you and your spouse/former spouse regarding income producing property are not tax deductible.

Answer 5

i think no, legal fees are not considered as tax deductions.
for any information browse the tax online efiling sites.

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Answer 6

criminal costs paid to pursue number of taxable earnings are allowable as miscellaneous itemized deductions subject to a cut back of two% of AGI. In some situations, in case you have taxable earnings from a criminal settlement, criminal expert costs could be dedcucted "above the line," meaning you get the whole deduciton somewhat of being constrained. while you're accused of fraud and the criminal costs are to safeguard your self, no deduction. while you are the plaintiff and you acquire a settlement, scientific care of costs relies upon on whether the settlement is taxable. charge for damages (which incorporate changing the motor vehicle the defendant destroyed): no longer taxable. charge for punitive damages (to punish the criminal): Taxable. seek for the advice of a tax expert. legal experts are infamous for giving unfavorable tax suggestion. they in many cases make it up on the fly.

Answer 7

No, advice from my personal experience!!!!

Answer 8

No