Is legal and professional fees tax deductible?
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Legal and professional fees are deductible if they are directly related to your business operations. For example, fees paid for legal advice on business matters, tax preparation, or professional services that help you operate your business are deductible. However, personal legal expenses, such as those for personal tax advice or divorce, are not deductible. Additionally, legal fees incurred in the acquisition or disposition of a business asset must be capitalized.