Are legal fees still deductible for 2018?

[pamb1]

Are legal fees for defense deductible for 2018?

[LinaJ2018 · Accepted solution]

No, they are not. Most of them are gone.  

With the new tax reform TCJA,  Congress eliminates the entire section of miscellaneous itemized deductions subject to 2% of your AGI including the legal fees. Prior to the 2017 Act, you could deduct legal fees that were greater than 2% of your adjusted gross income as a miscellaneous expense. However, not anymore after 2017.  There are still some legal fees might qualify for a deduction against your gross income like discrimination or Trade & Business related but they do not apply to you.