There is a difference on the attorney fee issue issue depending on if you are filing a personal tax return, or a business tax return.
- Attorney fees are not deductible on your personal tax return unless the fees and court costs are on behalf of the taxpayer in a discrimination case for employment and civil rights claims.
- However, it may be deductible on a business tax return.
Again, there is a difference between the personal tax return, or a business tax return.
- On the personal return (if this is for the remodel of your home), it is not included directly on your tax return. It is added to the cost bases of your home, and included when you sell your home.
- If the remodel is for business. It is again added to the cost bases of the property. However, you can start taking depreciation after the remodel is completed.