The Blogs that appear on this page may be sourced from outdated material so please seek appropriate professional advice. The blog material is in no way intended to be personal financial planning advice.

Catherines Chat

Wholistic Financial Solutions provides a lot of essential information and updates regarding the property investment industry. Check this page for the updates.

Are Legal Fees tax deductible?

Tuesday, April 19, 2011
An interesting question and relevant to me personally at this point in time.  As usual the answer to the question varies depending on the facts.  Tax is like that - always grey areas.  Which is why it pays to have a good advisor, a really good advisor, and even better if you have one who knows how the ATO works due to experience working for such.  Anyway, back to the question.  It depends on what the case is about.  If the case is about defending an issue which is to do with your business or income, it can be deemed to be on 'revenue' account and tax deductible.  However, if the case is about non income related issues such as a claim for personal harassment or defamation or personal damages due to a firm's harassment then the fees will be on 'capital' account and not tax deductible.  Good news however, is that if on 'capital' account - the huge winnings for damages will be also on capital account and not taxable.
Comments
Lace Tights commented on 03-Nov-2012 12:30 AM
Whoever is my relative, I will not be nice to them.
Fashion Tights commented on 03-Nov-2012 05:16 AM
We need two kinds of acquaintances, one to complain to, while to the others we boast.
Julissa commented on 03-Nov-2012 04:45 PM
Tell us your phobias and we will tell you what you are afraid of.
Danelle commented on 04-Nov-2012 03:06 AM
The secret of getting ahead is getting started.
Fashion Tights commented on 04-Nov-2012 10:02 AM
I have six locks on my door all in a row. When I go out, I lock every other one.
I figure no matter how long somebody stands there picking the
locks, they are always locking three.
Fashion Tights commented on 04-Nov-2012 10:16 AM
There are two ways of spreading light: to be the candle or the mirror that reflects it.
Elliott commented on 04-Nov-2012 02:58 PM
My life needs editing.
Trisha commented on 05-Nov-2012 12:51 AM
A man sooner or later discovers that he is the master-gardener of
his soul, the director of his life.

Post a Comment




Captcha Image

Trackback Link
http://www.wfscanberra.com.au/BlogRetrieve.aspx?BlogID=6103&PostID=267579&A=Trackback
Trackbacks
Post has no trackbacks.

Discover How to Build A Property Portfolio The Right Way Right From The Start

Recent Posts


Tags


Archive