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March 6, 2020
Question

Other - Why no deduction for legal fees?

  • March 6, 2020
  • 1 reply
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Why no deduction for legal fees this year?

1 reply

March 6, 2020

In 2018, the federal tax laws were changed. There were several itemized deductions that were eliminated, including legal fees.

 

Only legal fees paid for by a business that you own and directly related to producing or protecting income are deductible now. 

 

If you live in a state that has an income tax, your state may allow the deduction for legal fees. Some states adopted all of the federal rules and some did not. 

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