Solved: No, as the IRS only allows the deduction of legal fees in...

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

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

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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"

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.