Legal Question in Tax Law in Illinois

Are legal fees deductible on your taxes?

Asked on 2/04/20, 1:38 pm

1 Answer from Attorneys

Virginia Prihoda Law Offices of Virginia Prihoda

Maybe, maybe not. It all depends on the context of the litigation--if you paid legal fees in a business matter or to defend a financial income producing interest, probably. However, if you incurred legal fees to defend the value of an income producing asset, the fees may need to be capitalized and amortized over time. It's complicated and the most important factor is why the fees were paid, the reason for the lawsuit.

Read more
Answered on 2/04/20, 1:56 pm

Related Questions & Answers

More Tax and Taxation Law questions and answers in Illinois