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TEE891
New Member

If we hired a lawyer, could we get a tax break?

 
1 Best answer

Accepted Solutions
LeeM
New Member

If we hired a lawyer, could we get a tax break?

It depends, if you hired a lawyer for either of the three reasons below (You can't deduct legal fees paid to defend charges that arise from participation in a political campaign), then yes.

  1. Unreimbursed Legal fees related to your job, provide the expense is necessary and appropriate and helpful to your business. An expense doesn't have to be required to be considered necessary. From IRS Publication 17, Miscellaneous Deductions linked to here. (You can find directions to enter those unreimbursed job expenses in the FAQ at the bottom of this answer:
  2. Legal fees incurred to determine or collect any tax liability and legal fees expended to secure taxable income (entered the same way as Number 1)
  3. Legal fees directly related to your Schedule C (self-employment). You can enter those amounts under Legal/Professional fees by following the directions in the FAQ at the bottom of this answer:

Entering Job Related Expenses

https://ttlc.intuit.com/replies/4800418

Entering Self Employment Expenses

https://ttlc.intuit.com/replies/4800425

View solution in original post

2 Replies
Carl
Level 15

If we hired a lawyer, could we get a tax break?

For what? Just hiring someone doesn't qualify you for anything. Why are you hiring a lawyer? To prepare a last will and testament? That's not deductible.
LeeM
New Member

If we hired a lawyer, could we get a tax break?

It depends, if you hired a lawyer for either of the three reasons below (You can't deduct legal fees paid to defend charges that arise from participation in a political campaign), then yes.

  1. Unreimbursed Legal fees related to your job, provide the expense is necessary and appropriate and helpful to your business. An expense doesn't have to be required to be considered necessary. From IRS Publication 17, Miscellaneous Deductions linked to here. (You can find directions to enter those unreimbursed job expenses in the FAQ at the bottom of this answer:
  2. Legal fees incurred to determine or collect any tax liability and legal fees expended to secure taxable income (entered the same way as Number 1)
  3. Legal fees directly related to your Schedule C (self-employment). You can enter those amounts under Legal/Professional fees by following the directions in the FAQ at the bottom of this answer:

Entering Job Related Expenses

https://ttlc.intuit.com/replies/4800418

Entering Self Employment Expenses

https://ttlc.intuit.com/replies/4800425

View solution in original post

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