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Get your taxes done using TurboTax
No, it’s not considered part of the bad debt.
If this was a suit to collect a personal debt, rather than a business-related debt, your legal fees aren’t deductible.
Please see the TurboTax article Can I Deduct Legal Fees on My Taxes? - TurboTax Tax Tips & Videos for more information.
March 7, 2022
5:59 AM