I had expenses for a legal defense of criminal charges in 2016. If convicted I would have been in breach of my employment agreement. Are the lawyer fees deductible?

ryanshebelsky · ‎June 4, 2019

bwa · ‎June 4, 2019

Legal fees are generally not deductible. There are two significant exceptions

Legal fees are deductible if incurred to determine or collect any tax liability.
Legal fees are deductible if the suit is to secure taxable income.

Because of those criteria, your legal fees would not be deductible.

(Example: legal fees for a dui charge are not deductible even if losing would result in your loss of employment as a truck driver.)

bwa · ‎June 4, 2019

Legal fees are generally not deductible. There are two significant exceptions

Legal fees are deductible if incurred to determine or collect any tax liability.
Legal fees are deductible if the suit is to secure taxable income.

Because of those criteria, your legal fees would not be deductible.

(Example: legal fees for a dui charge are not deductible even if losing would result in your loss of employment as a truck driver.)

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