There are many legitimate legal fees that people can write-off from their taxes if they are careful to observe the rules. Fees for tax advice are deductible, but personal legal bills cannot be deducted. Business legal fees that are paid in a person’s trade or business are deductible. Contingent legal fees can be tricky, but legal fees in employment cases can be deducted fully. Investment legal fees that don’t relate to a business but only to investments are miscellaneous itemized deductions. When determining what they can deduct people need to think about which fees might be considered reasonable. It is a good idea to get more professional advice from an estate planner who can properly advise clients about their individual tax situations.
See Robert W. Wood, Perfectly Legal Tax Write-Off? Lawyer Fees – Even $1,200 An Hour, Forbes, February 4, 2016.
