are Legal fees tax deductible

[dalia]

Hi,

i was told legal fees are tax deductible for seeking child support but not to the person paying.

can anyone clarify this for me.

i have spent 30k on legal fees to get child support so far and would really like to hear that i can deduct them from my earnings.

if it's true, and i don't make enough money to use the full deduction amount, can i carry it over for future years, if so, how many years?

dal

[oldernwiser]

Yes, legal fees to secure child support are a deductible expense. However you would have to get your lawyer to confirm that the amount you mentioned is for that purpose. I know nothing of your situation, but presumably your lawyer also represented you for things like property division, spousal support, access schedule, etc.
Time spent on those types of issues would not be part of the deductible total.

As to carrying part of the deduction to future years.... I don't know if that is possible, but my intuition tells me it is unlikely.

[dalia]

Thanks, believe it or not this is all for child support, he's given me the run around, made false claims, missed court dates and fooled around running up my legal bill.

dalia

[dadtotheend]

I got a letter from my lawyer stating that 80% of the $60K in fees that I paid related to the obtaining of a support order, which rendered them deductible. These fees straddled a two year period and so I claimed them over two taxation years. The letter is standard. I've seen lots of em.

There is no carryover provision unless the fees reduce your taxable income to less than zero, in which case a non-capital loss arises, which can be carried back three years and forward ten years.

[representingself]

Holy Cr*p..... I didn't know that!!

Are they deductible at all for the Support Payor???

[Stargate]

Originally Posted by representingself

Holy Cr*p..... I didn't know that!!

Are they deductible at all for the Support Payor???

No, they are not deductible for the child support payor.

[dalia]

Thanks for the feedback, talked to my accountant and she said they were deductable as long as they are for seeking support.

I am so glad to hear about this, now I don't feel so bad for spending 30K on legal fees (which are still mounting as we speak because he's nickel and diming), at least it comes off my income thus reducing taxes.

dalia