- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
Yes, legal fees are deductible as a Miscellaneous Itemized Deduction, and is subject to the 2% rule. In order to claim a deduction for legal fees you must itemize your deductions. Additionally,
the deduction is allowed only for the amount that is more than 2% of your
Adjusted Gross Income (AGI).
Example: If your AGI is $80,000, your expenses would have to be more than $1,600 ($80,000 x 2%). Even then, you could only deduct the amount over $1,600. So, if your miscellaneous deductions were $2,000 you could only deduct $400 ($2,000 - $1,600).
‎June 6, 2019
4:29 AM