Attorney’s fees paid to help your business or for income-producing reasons are tax-deductible.
Examples include:
– Business legal fees are deductible by all entities
– Production of income
– Management of an income-producing property
– Tax planning and preparation purposes
These attorney fees are usually filed as miscellaneous itemized deductions, and there are certain limitations to them.
Attorney’s fees that are not tax deductible include:
– Divorce in general (Exceptions: Collecting alimony; Tax advice relating to the divorce)
– Personal injury or wrongful death
– Will or Probate
– Closing for the purchase of a home
– Criminal cases that are not work related.
If you have questions about whether or not you attorney’s fees are tax-deductible, you should ask your attorney before he does any work for you. If you will be paying both deductible and non-deductible fees, you should ask for these fees to be on separate invoices for tax purposes.
