Can I write off legal fees for drafting contracts?

Legal fees incurred for drafting contracts are generally deductible if they are directly related to your business operations. For example, if you are a business owner and you pay an attorney to draft contracts for your clients or suppliers, these fees are considered ordinary and necessary business expenses. However, if the legal fees are related to personal matters or capital expenses, such as drafting a contract for purchasing a personal residence, they are not deductible.