Deductable

[JTL]

Used the search function but didn't see anything, anyone know if the lawyer fees can be written off as a tax deduction in part or in whole?

[HHM]

In what context?...for an individual, the answer is generally no.

[CATCHMEIFYOUCAN]

not to steer you away from this wonderful forum but go into lawyers.com and present you tax question to them. they have a section for tax questions there. but dont stay on their too long, i think they are a mean site and give negative feedback

catchmeifyoucan

[HHM]

There is a reason I asked "in what context". For example, you can deduct costs of suit if you paid attorney's fees and costs in connection with a Discrimination Law Suit. You can also. sometimes, deduct attorney's fees that are specifically related to "tax advice".

However, the first question is...do you itemize your deductions. If not, then the question of deducting attorney's fees is moot. If you do itemize, attorney's fees are deducted as tier 2 "Misc", so you can only deduct that amount which exceeds 2% of your adjusted gross income.

Since this is BK forum, unless you have a really complicated case that involves significant IRS issues, bankruptcy attorney's fees are not tax deductible. And if your case does involve IRS issues, you would need to separate out the fee (which most attorney's would be loathe to do) to determine what part of the fee is specifically related to Tax Advice.

Thus, as a general matter, attorney's fees are not tax deductible.

[CindyLou]

You can also deduct if you are paying an attorney for financial planning or tax preparation or planning

[HHM]

You can also deduct if you are paying an attorney for financial planning or tax preparation or planning

The latest notes I have seen form the IRS on this...is that the financial planning must be specifically "tax" related. General financial planning would not be deductible.