WRT, settlement of defamation suit, received settlement. Half in December 2017, half in January 2018 (net of legal fees). Any thoughts on a basis to claim all legal fees in 2017? Any thoughts on way to justifiably deducting legal fees in 2018, in light of the new tax law?
For a cash-basis taxpayer deductible legal fees are claimed on the tax return corresponding to the year they were paid, so fees paid in 2017 belong on a 2017 tax return.
