Can I deduct legal fees associated with a foreclosure on a owner-financed mortgage. There was not gain on the original sale - just interest income

[jpcate]

can I deduct legal fees associated with a foreclosure of an owner-financed mortgage?  There was no gain or loss on the original sale.  Just reported interest income on the payments that had been received.

[RichardG]

You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax.  In your case, it appears the legal fees were incurred to collect or produce taxable income.  You should deduct the legal fees.

[jpcate]

Where do I enter that in Turbo Tax or what form does it go on