How do I deduct legal and professional fees on my taxes?
Business Expensesfreelancersconsultantssmall business ownersreal estate agentstax
Legal and professional fees can be deducted if they are incurred in the course of running your business and are both ordinary (common and accepted in your industry) and necessary (helpful and appropriate for your business). Examples include fees paid to accountants, lawyers, or consultants for business advice or services. Fees related to personal legal matters, such as divorce or personal tax advice, are not deductible. Additionally, fees that are capital in nature, such as those incurred for acquiring a business asset, must be capitalized and depreciated over time rather than deducted in the year incurred.