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Can I deduct attorney fees?

Forum|Forum|3 years ago
December 30, 2022
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My wife started an in home daycare business. She was falsely accused of abuse and had to hire an attorney that cost over $6k. Is that deductible?

TurboTax Live Self Employed

Best answer by Anonymous_

Read the information at the link below (IRS publication).

https://www.irs.gov/publications/p535#en_US_2021_publink1000209199

See also Section 162(q)

https://www.law.cornell.edu/uscode/text/26/162

Carl11_2

Employee

Generally, legal fees incurred related to your business are deductible as a business expense. I can't see any reason why the fees you incurred would not be deductible as such. I am of course, assuming your wife's daycare meets all federal, state and local laws and requirements to operate.

A

Anonymous_

Employee

@Carl11_2 wrote:

I can't see any reason why the fees you incurred would not be deductible as such.

Because you have not read the Code. There is an exception which may very well not apply here (and probably does not) but it is an exception to deductibility.