Tax Day is rapidly approaching and we are all scrambling through our files and receipts looking for tax deductions. You know you will have tax deductions for home improvements. You know you will have tax deductions for charitable donations. But maybe you do not know that you could also get a tax deduction for legal fees.
Legal expenses can be suffocating. But at least it is possible to get tax deduction for legal fees. The deductibility of legal fees depends on the legal issue at hand. No, there is not a tax deduction for all legal fees. But in some cases there certainly is a tax deduction for legal fees. Tax deductible legal fees are not usually correlated to personal lawsuits, such as a divorce. However, if following your divorce you have to take your ex to court to get your alimony payments then deducting legal fees is possible.
When is comes to legal fees tax deductible expenditures are a little tricky. If you are suing your neighbor for harassment, those are probably not deductible legal fees. But if you are suing a coworker for harassment you probably can get a tax deduction for legal fees. See what I am getting at here? But generally speaking, any personal matters or a law suit about anything that does not generate taxable income will not incur tax deduction for legal fees.
For the most part you should be able to surmise whether or not you can get a tax deduction for legal fees from information online or from information you can collect at the tax office. But to be certain you are utilizing all possibilities regarding tax deduction for legal fees, you should consider contacting a tax professional or even a legal professional to assist you. Good luck and Happy Tax Day to you!