Can freelancers deduct legal and professional expenses?
Business Expensesfreelancersconsultantssmall business ownersindependent contractorsexpense
Legal and professional expenses are deductible when they are directly related to the operation of a business. This includes fees paid to attorneys, accountants, consultants, and other professionals for services that help maintain or improve the business. For example, costs incurred for drafting contracts, tax preparation, and business-related legal advice are deductible. However, personal legal expenses, such as those related to personal tax advice or divorce proceedings, are not deductible. Additionally, if the legal expense is related to acquiring a business asset, it may need to be capitalized rather than deducted immediately.