I received a 1099 from a brokerage firm to settle certain investment losses. Can I deduct the related legal fees I spent to get to settlement?

[Anonymous]

I lost about $80k in unsuitable investments and initiated a FINRA action.  I was awarded $35k in compensation (for which I received a 1099), but my lawyer took about half of it, netting me only about $18k.  Can I deduct the $17k in legal expenses?

[Carl]

yes, but you won't deal with that under the Personal Income tab. You'll deal with it when you get to it in the program, under the Deductions and Credits tab in the Other Deductions & Credits section. There's a sub-section under that, called "Legal Fees", and you'll deal with your legal costs there.