Deducting Legal Fees

January 25, 2019
Leisha Murphy

As we head into tax season, we thought it was a good time to share some information about when legal fees may be tax deductible.

Section 3.81 of the Income Tax Folio S1-F3-C3 sets out when a recipient spouse may deduct legal fees. For your convenience, here’s the full text of 3.81:

Deductible legal and accounting fees

3.81 A recipient can deduct legal and accounting fees incurred to:

If any of the above situations apply to you, you can ask your lawyer for a letter setting out the portion of the fees you paid that were related to the relevant issue.

Remember: We are not, and do not profess to be, tax experts.  If you have any specific tax-related questions about the deductibility of your legal fees, you should consult your tax advisor or accountant.

For more about tax treatment of legal fees in the family law context, check out my previous post here.

 

Leisha Murphy
Leisha Murphy
Partner (Vancouver)
Connect Family Law

Leisha takes a heart-forward approach to her practice. Providing clients with guidance and education, she takes a “big picture” view , assessing the long-term impacts of decisions to ensure the best possible outcome for you and your family.