Legal fees are generally not deductible on a personal 1040 return.
There are three significant exceptions
• To produce or collect income that must be included in your gross income,
• To manage, conserve, or maintain property held for producing such income, or
• To determine, contest, pay, or claim a refund of any tax.
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.
