Tax-Deductible Attorney’s Fees

Attorney’s fees paid to help your business or for income-producing reasons are tax-deductible.

Examples include:

–          Business legal fees are deductible by all entities
–          Production of income
–          Management of an income-producing property
–          Tax planning and preparation purposes

These attorney fees are usually filed as miscellaneous itemized deductions, and there are certain limitations to them.

Attorney’s fees that are not tax deductible include:

–          Divorce in general (Exceptions: Collecting alimony; Tax advice relating to the divorce)
–          Personal injury or wrongful death
–          Will or Probate
–          Closing for the purchase of a home
–          Criminal cases that are not work related.

If you have questions about whether or not you attorney’s fees are tax-deductible, you should ask your attorney before he does any work for you. If you will be paying both deductible and non-deductible fees, you should ask for these fees to be on separate invoices for tax purposes.

Print Friendly, PDF & Email