If you receive tax-free and taxable damages like punitive damages or interest , you 'll need to apportion your attorney fees. Your lawyer gets 40 . Since punitive damages are taxable, half your lawyer 's fees are income, and you can probably deduct them only as a miscellaneous itemized deduction..
Related posts to are attorney fees deductible
If you need legal help preparing your taxes or getting money owed to you, then attorney's fees you pay may be tax deductible..
Can you deduct your legal fees for a divorce, alimony, or related expenses? Generally, the IRS says no. Here are some rules that may help. NONDEDUCTIBLE EXPENSES..
No one likes paying legal fees, but tax deductions make them a lot less painful: a 40 tax rate means $10,000 in legal fees costs you only $6,000. But personal legal fees are non-deductible, and that makes them the least desirable ones..
Are legal fees for divorce tax deductible? While we do not give tax advice, we do give you the generally accepted answer to this question..