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Mark D
Mark D, Enrolled Agent
Category: Tax
Satisfied Customers: 1304
Experience:  MBA, EA, Specializing in Business and Individual Tax Returns and Issues
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Can I write off my attorney fees on my taxes

Resolved Question:

The case pertains to a quiet title and a breech of contract. The opposing side owes me $200 k

If I can, please provide me the IRS tax info. Thank you
Submitted: 9 years ago.
Category: Tax
Expert:  Mark D replied 9 years ago.
Customer

Attorney's fees and other litigation costs are deductible to the extent they are incurred to produce income that is includable in the recipient's gross income. So, if you generate taxable income from your case, you could deduct the related fees.

Regards,

Mark D

Mark D and 2 other Tax Specialists are ready to help you
Customer: replied 9 years ago.
The money that I got was from my divorce settlement. My ex-girlfriend and I purchased a new home, however she did not add me on title or pay me back the money. I am in litigation and my attorney fees are over $20,000. We are going to mediation, so if I accept her offer, would I not have to pat taxes on that income....if so, could I write off the attorney fees on my taxes.
Expert:  Mark D replied 9 years ago.
Customer

Generally you would not report a repayment of owed monies as taxable income. Therefore, any related attorney fees would not be deductible.

Regards,

Mark D

Mark D and 2 other Tax Specialists are ready to help you