I am self employed and a client did not pay me the final bill. I hired a lawyer to send a demand letter in 2016. Are his fees deductible?

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The amount is significant and we filed a lawsuit with the court in 2017.

[Marketstar · Accepted solution]

Yes, you can cliam your legal fees as an ordinary and necessary business expense in the Legal and Professional Fees category:

Type in schedule c in the search box, top right of your screen

Click on the first category Jump to schedule c link

Follow the prompts and online instructions

Arrive at the Your Business page

Scroll down to the Business Expense category

Click start or update next to Other Common Business Expenses category

Arrive at the Let's write off some business expenses page

Scroll down to the Legal and Professional Fees category to make your entry.