I know from some research that most personal legal fees incurred are not tax deductible. However, I have a question surrounding fees incurred as a result of a property line dispute. Our neighbors filed a baseless property line claim as retaliation when my husband and I did not grant them an electrical easement across our property in the exact location that they desired it. To be clear, we did grant them an easement, at our cost, and received no payment for said easement but they were in essence, unhappy with the location. We spent the next several months dealing with costs of defending our recorded property lines. There was no substance to their claims and all was dismissed this summer. Are those fees deductible, under the civil rights provision? Also, I do have a hobby greenhouse business on my property but this was not related to the business or a cost of that business. Would the legal fees be deductible as a business expense, even if they were not directly related to the business?
