In TT Home & Business Desktop - where do I enter unreimbursed legal fees for derivative action against partners?

Forum|Forum|2 months ago
May 5, 2026
1 reply
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I am suing my partners on behalf of the firm for breach of fiduciary duty and am not being reimbursed legal fees - I was told that goes on Schedule E part 2 line 28(i), but i cannot figure out where to put the information in the guidance system and if I override, it wont let me electronically file.

TurboTax Business Windows

Rick19744

Level 13

This issue (determining deductibility) is beyond the scope of a forum such as this. Having said that:

There are only certain legal expenses that are deductible.
It appears that you are asking the question in TT Business. The expenses you are referring to are personal and should not be reflected on the business return.
Depending on the $$ involved, I would recommend consulting with a tax professional to determine the deductibility; as noted above only certain expenses would be deductible.
Since the facts are minimal, I don't believe the expense would be reflected on Schedule E.
- Expenses that can be reflected on Sch E would be unreimbursed partnership / shareholder expenses.
- But the partnership agreement or operating agreement, etc. must specifically state what expenses a partner is responsible for paying individually.
My initial impression would be, if deductible, they would be reflected on your personal return Schedule 1 line 24z.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.