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New Member
posted Jun 4, 2019 9:44:39 PM

Can I claim attorneys fees? In 2017 I sued my contractor for scamming me after the La flood. I did not collect anything and it is now a criminal matter

My home flooded in Aug 2016.  I hired a contractor to rebuild and he scammed me, left without finishing.  I hired an attorney and paid him $2377 in an attempt to try and get some of the $52000 I paid him.  Can I claim these attorney fees?

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New Member
Jun 4, 2019 9:44:41 PM

In your situation, No.

The basic rule is that you can deduct attorney's fees you pay to:

  • produce or collect taxable income, or
  • help determine, collect, or obtain a refund of any tax.

Generally, you can't deduct fees paid for advice or help on personal matters or for things that don't produce taxable income. For example, you can't deduct fees for:

  • filing and winning a personal injury lawsuit or wrongful death action—the reason is that the money you win isn't taxable
  • settling a will or probate matter between your family members
  • help in closing the purchase of your home or resolving title issues or disputes (these fees are added to your home’s tax basis)
  • obtaining custody of a child
  • obtaining child support
  • name changes
  • legal defense in a civil lawsuit or criminal case that's not work-related—for example, attorney fees you pay to defend a drunk driving charge or against a neighbor's claim that your dog bit and injured.