I have a question regarding a pending lawsuit for one of my clients. Here is a brief overview of the situation:

A realtor is demanding payment for unpaid commissions from my client. This lawsuit was filed in 2017 and names my clients LLC, the S Corporation that owns the LLC and my client as an individual. My client as well as two other individuals were stock holders in the S Corporation. The other individuals are not named in the suit. Both the LLC and S Corporations were closed prior (2016) to the filing of this suit in 2017.

This has obviously incurred attorney fees for my client. These fees were paid to the attorney in 2017 and still being paid in 2018. My question is, how or where can I deduct these attorney expenses on the personal income tax return for my client? Also, do the other stock holders of the S Corporation have rights to these attorney fees as a deduction.

I thank you for your time in reviewing this case. I appreciate any and all assistance that you can provide.

My question is, how or where can I deduct these attorney expenses on the personal income tax return for my client? =========>I do not think so in your case however, it depends; in a variety of both business and non-business situations, Legal fees related to the collecting of income or collecting, acquiring, or calculating tax may be deductible on your federal income taxes I mean , you may take a deduction when you need an attorney's help to make money you?ll have to pay tax on; for example, For example, you can deduct attorney fees paid for collecting money owed to you by a customer



Also, do the other stock holders of the S Corporation have rights to these attorney fees as a deduction.====>>as mentioned above.