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Level 1
June 1, 2019
Solved

I sold rental property in 2014 and the buyer filed a lawsuit against us costing us $9,000 in 2016. Are our legal fees in this case tax deductible?

  • June 1, 2019
  • 1 reply
  • 4 views
Again, this was once rental property.
Best answer by

Yes, You are able to deduct attorney fees and other legal cost as long as the fees are related to a tax issue or to producing taxable income.

1 reply

Answer
June 1, 2019

Yes, You are able to deduct attorney fees and other legal cost as long as the fees are related to a tax issue or to producing taxable income.