Legal Fees-Deduction

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  • Bird Legs
    Senior Member
    • Jun 2005
    • 990

    #1

    Legal Fees-Deduction

    Client, a sole proprietor, has been paying sub contract labor. The State Unemployment
    Commission reclassified them as employees and is trying to collect state unemployment
    tax. Client hires attorney to fight this.
    Question: are these attorney fees deductible as a business expense?
    Thanks
  • OldJack
    Banned
    • Dec 2005
    • 1689

    #2
    Yes the attorney fees are deductible as business expense (1040 Sch-C) the same as if the client hired you to represent them.

    Comment

    • Bird Legs
      Senior Member
      • Jun 2005
      • 990

      #3
      Old Jack

      Thank you for yuur response.
      By the way, are you related to Old Jack Daniels?

      Comment

      • OldJack
        Banned
        • Dec 2005
        • 1689

        #4
        Originally posted by Bird Legs
        By the way, are you related to Old Jack Daniels?
        We become closely related every time I go to a bar.

        Comment

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