You can claim that as an adjustment on sch 1. Follow these steps:
- go to the federal income section
- scroll to the bottom
- Miscellaneous Income, 1099-A, 1099-C, Start
- Scroll to the bottom
- Other reportable income, Start
- Other taxable income?
- Select YES
- Description Approved Legal Fees
- Amount, enter your amount as a negative
- continue
Reference: Publication 525, page 33.
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