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null308
New Member

Legal expenses deductible

Are legal expenses associated with a disability suit deductible if the proceeds from the suit are not taxable?

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Accepted Solutions
MinhT
Expert Alumni

Legal expenses deductible

No, as the IRS only allows the deduction of legal fees incurred in acquiring or defending your taxable income.

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2 Replies
MinhT
Expert Alumni

Legal expenses deductible

No, as the IRS only allows the deduction of legal fees incurred in acquiring or defending your taxable income.

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**Mark the post that answers your question by clicking on "Mark as Best Answer"
Bounias
New Member

Legal expenses deductible

Curious if anyone knows if legal fees can be deducted for a lawsuit where a trust and the beneficiary of a trust are suing a trustee for alleged theft.  This is an irrevocable trust where the beneficiary and the other trustee believe that the trustee who was actively managing things has improperly used trust assets.

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