13 Nov Are Attorney Fees Tax Deductible? On the Tax Deductibility of Attorney Fees
Are Attorney Fees Tax Deductible in a Divorce?
A question that we are frequently asked is “Are Attorney Fees Tax Deductible?”, or more specifically, whether divorce attorney fees deductible.
Under the Internal Revenue Code § 262, no deduction shall be allowed for personal, living, or family expenses. So, attorney fees that are paid in connection with a divorce, separation, or decree for support are not deductible by either spouse.
However, under the Internal Revenue Code § 212, legal fees may be deductible under the following circumstances:
(1) for the production or collection of income;
(2) for the management, conservation, or maintenance of property held for the production of income; or
(3) in connection with the determination, collection, or refund of any tax.
Are Attorney Fees Tax Deductible? No, under most circumstances, legal fees are not deductible for purposes of family law, criminal law, civil litigation, but some forms of business attorney fees may be.