It depends but if you are hiring an attorney to collect on income that will be reported as taxable income at some future date, then you will able to claim these legal expenses.
The
basic rule is that you can deduct attorney's fees you pay to:
- produce or collect taxable
income, or
- help determine, collect, or
obtain a refund of any tax.
Simply
put, you can take a deduction if you need an attorney's help to make money
you’ll have to pay tax on; or if an attorney helps you with a tax matter, like
representing you in an IRS audit.
