This could be considered legal fees necessary to produce taxable income. In your case you are getting the real estate taxes lowered, which in turn lowers your deduction and increases taxable income.
Legal fees are not a direct deduction like the real estate taxes. They can be used as a miscellaneous deduction on your itemized deductions. This fall into the section which is limited to the amount that exceeds 2% of your adjusted gross income (AGI). Any excess can be added to the other itemized deductions on your tax return.
