2007-02-13 08:24:59 · 3 answers · asked by Kacey R 1 in Business & Finance ➔ Taxes ➔ Other - Taxes
No. Only legal expenses related to tax preparation or tax law issues are deductible. Legal insurance or pre-paid legal is not deductible.
2007-02-13 09:14:02 · answer #1 · answered by Bostonian In MO 7 · 1⤊ 0⤋
Legal expenses are only deductible if the expense is directly related to the earning of income. If you are paying in after tax deductions for a legal plan through your employer, those are not deductible until you actually use the legal services AND the legal services was related to you earning income.
For example, if you use the legal services to sell your house, then the cost of those legal services would be applied against the sale of your home as a selling expense. If you use the legal services to pay for a portion of the costs of adopting a child, then the expense can be used for the adoption credit. If you use the legal services to pay for your defense for a ticket or a DUI, then the expense is non-deductible. You have to first use the service and then you can determine, based on what service you received, whether the expense is deductible or not.
2007-02-13 17:05:30 · answer #2 · answered by jseah114 6 · 2⤊ 0⤋
Yes you can, ask a tax advisor or read the 1040 book it will tell you what you need to proof and all.
2007-02-13 16:41:33 · answer #3 · answered by copita 3 · 0⤊ 3⤋