Originally Posted by inbb2b
You stated "those legal expenses that arise out of any legal dispute or action involving your business enterprise." That is what I am asking, can I deduct fees for having to hire an attorney to force a partition action because the co-owner of property refused to split the rents. The court ruled in my favor, ordering the property sold and all back rentals reimbursed. Would these attorney fees paid to settle a business dispute be a business expense on my tax return.
as i said, it depends; aslongas you file Sch C/SE then yes you can dedcut fees for having to hire an attorney to force a partition action for biz expenses. however, the IRS says that most individuals renting property to others will report rental income using Sch E, NOT ON Sch C/SE. However, if you provide what the IRS calls "substantial services" to your tenants, or if you're a real estate dealer, you would report the income using Sch C
/SE, tyhen i guess you can deduct it as part of your biz related expenses on your Sch C.please contact the IRS or IRS EA/ a CPA specializing in taxds in yourt local area for more info in detail.