Can I Deduct Legal Fees?

Legal fees can be very expensive, and whether they are deductible depends heavily on why you hired the attorney. Legal fees related to your business or self-employment income are generally deductible as a business expense. Fees paid for matters involving taxable income, such as collecting alimony or pursuing a discrimination lawsuit, may also be deductible in certain circumstances. Personal legal fees, such as those for divorce proceedings, writing a will, or buying a home, are generally not deductible. The rules around legal fee deductibility changed with the 2017 tax law, and some previously allowed deductions were eliminated, so it is worth asking a tax professional whether your specific situation qualifies.