Can the cost of an attorney be deducted if used for preservation of income?

[MinhT · Accepted solution]

This used to be deductible as a miscellaneous itemized deduction subject to the 2% of AGI floor.

The Tax Cuts and Jobs Act has eliminated this deduction for tax years 2018 to 2025.

[1dinglee]

Thank you for you quick response. You are correct except in a few cases. publication 529 pg. 5 about 75% down left column indicates mine is deductible. But Turbo Tax won`t use it. How can I deduct it?

[MinhT]

The exception you mention only applies if you have a trade or business (filing Schedule C, E or F). Legal fees are then deducted as a business expense on these Schedules.
Legal fees for an employee are not deductible (except for personal injury in certain whistleblower claims and unlawful discrimination claims). See page 8 of IRS Publication 529.