I won. We settled in 2021 in mediation.
Technically, you did not win. There was no winner or loser. The matter was settled outside of court without a judges ruling, through mediation according to you. Just be aware of that.
Can I claim all my 2020 legal fees in 2021?
Probably not. But maybe. It depends on the circumstances and history. Was the property a business investment when acquired? Was a legal business entity established for this?
Generally, legal fees for personal property and/or personal disputes are not deductible. But like I said, it depends on the specifics of your situation. I suggest you seek legal counsel from a CPA, or better yet a tax attorney in your local jurisdiction, as laws on this may not only differ state to state, they can also differ among jurisdictions within a state. Generally, the IRS will accept the legal treatment of matters below the federal level; but not always and not on everything.
