Can I deduct the 11k in legal fees?

anastasiosk · ‎June 1, 2019

SherylSTaxExpert · ‎June 1, 2019

The Tax Cuts and Job Acts has eliminated miscellaneous itemized deductions (which is where you would deduct legal fees). However, depending on the type of legal fees you may be able to deduct it as an adjustment to your gross income and not as an itemized deduction.

If the legal fees related to discrimination suits from whistleblower awards. Additionally, if those fees related to your trade or business (basically defending your business) you would be able to deduct those legal fees.

For additional information, you can also refer to IRS Publication 529 via the following link

https://www.irs.gov/pub/irs-pdf/p529.pdf

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SherylSTaxExpert · ‎June 1, 2019

The Tax Cuts and Job Acts has eliminated miscellaneous itemized deductions (which is where you would deduct legal fees). However, depending on the type of legal fees you may be able to deduct it as an adjustment to your gross income and not as an itemized deduction.

If the legal fees related to discrimination suits from whistleblower awards. Additionally, if those fees related to your trade or business (basically defending your business) you would be able to deduct those legal fees.

For additional information, you can also refer to IRS Publication 529 via the following link

https://www.irs.gov/pub/irs-pdf/p529.pdf