How to Use Legal Fees as a Tax Deduction

Video Transcript

"For the most part, there aren't a lot of legitimate deductions for legal fees on your personal return. Occasionally, you may have a situation that you may be able to deduct that, but for the most part, it would apply to business, small businesses. If you use an attorney to structure a business for you, to set it up as an LLC or an S-Corp or a C-Corp, those fees you typically would write off on your business as an expense, and therefore they would flow through on a Schedule C and you would get the deduction for 'em on your tax return. Again, typically you would not use legal expenses as a deduction on your personal return other than as it flows through from your Schedule C if you have a business. But, I would encourage you to run it past your tax professional and let them give you some guidance as to handle that situation."