What Legal Expenses Are Tax Deductible for Your Business?

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Can Legal Fees Be Deductible for a Business?
Common Legal Fees That Are Deductible
Attorney fees for filing and defending against lawsuits Business bankruptcy legal expenses Business incorporation expenses Business planning expenses Business tax fees Commercial real estate closing expenses Court costs and attorney fees revolving around the collection of taxable income Drafting and reviewing contracts Immigration expenses (for hiring and moving non U.S. residents to the U.S.) Legal fees related to criminal charges against your business Unlawful discrimination claims Whistleblower claim
What Legal Fees Aren't Deductible?
Divorce Child custody Personal injury Estate planning/will preparation Civil/criminal charges revolving around a political campaign Civil/criminal charges revolving around any personal relationships outside of work Legal fees related to the purchase of real estate for personal use Nonbusiness tax advice Fees related to collection, determination, or refund of taxes
How Much Can Be Deducted?
What Documentation is Required to Deduct Legal Fees?
Can You Deduct Legal Fees From an On-Going Lawsuit?
Can Small Businesses Deduct Start-Up Expenses?
Market research expenses Product research Cost of searching for and securing an office or workspace Advertising Wages and salaries for training Professional and consultant fees Costs associated with acquiring an existing business Costs of leasing a business property Equipment costs
The Takeaway
Frequently Asked Questions
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About the Author
Lauren Ward is a personal finance expert with nearly a decade of experience writing online content. Her work has appeared on websites such as MSN, Time, and Bankrate. Lauren writes on a variety of personal finance topics for SoFi, including credit and banking.
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