I'm in California. I am the employee of a company with two other employees. One of the employees happens to be my husband and we are going through a divorce. I have only a business relationship with the other employee. The two of them installed a spy camera on me in our company office, which also happens to be my home. I filed for a restraining order against my husband/employee and I had to depose the other employee and involve him in a trial. Are my legal expenses deductible under the unreimbursed employee expense deduction or as a legal expense deduction in California?
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Even if this was business-related legal expenses, the federal deduction for miscellaneous itemized deductions has been eliminated for 2018-2025.
Assuming California still allows a miscellaneous itemized deduction for legal expenses related to the production of income, the question would be, what was your extra cost incurred because of the business relationship that was over and above the costs due to the personal situation. How much extra did you have to pay because this was a business relationship on top of a personal divorce?
Sadly this all sounds like non deductible personal expenses since this all stems from a divorce. Ask your attorney to sue for expenses ... when you win you can usually get them paid by the loser.
Even if this was business-related legal expenses, the federal deduction for miscellaneous itemized deductions has been eliminated for 2018-2025.
Assuming California still allows a miscellaneous itemized deduction for legal expenses related to the production of income, the question would be, what was your extra cost incurred because of the business relationship that was over and above the costs due to the personal situation. How much extra did you have to pay because this was a business relationship on top of a personal divorce?
@Opus 17 Thank you, that makes sense. I can answer that.
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