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Liz01
New Member

Can u deduct legal fees associated with a BP settlement? I am not a commercial fisherman but do fee my family with the fish and crabs I catch.

 
1 Best answer

Accepted Solutions
Marketstar
Level 7

Can u deduct legal fees associated with a BP settlement? I am not a commercial fisherman but do fee my family with the fish and crabs I catch.

Yes, you can deduct legal fees for your BP settlement.

To deduct legal fees, you must itemize deductions on Schedule A, and the sum total of your miscellaneous deductions including your legal fees must exceed 2% of your Adjusted Gross Income.

Given the above limitations you may not be able to benefit from your legal expenses.

To enter your legal expenses:

  • Type in legal expenses, deduction  the search box, top right of your screen, then click the magnifying glass

  • Click the jump to legal expenses, deduction link in the search results

  • Follow to prompts and online instructions


View solution in original post

1 Reply
Marketstar
Level 7

Can u deduct legal fees associated with a BP settlement? I am not a commercial fisherman but do fee my family with the fish and crabs I catch.

Yes, you can deduct legal fees for your BP settlement.

To deduct legal fees, you must itemize deductions on Schedule A, and the sum total of your miscellaneous deductions including your legal fees must exceed 2% of your Adjusted Gross Income.

Given the above limitations you may not be able to benefit from your legal expenses.

To enter your legal expenses:

  • Type in legal expenses, deduction  the search box, top right of your screen, then click the magnifying glass

  • Click the jump to legal expenses, deduction link in the search results

  • Follow to prompts and online instructions


View solution in original post

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