I paid a lawyer $6500.00 to represent me in a criminal lawsuit case which I plead not guilty and was put on a diversion program. Can I claim this money on my 2011 tax returns?
Criminal Defense Attorney
I think you might be better off asking this question to a tax attorney or accountant.
My response to your question is a generic response and should not be construed as controlling to your case. I can not effectively advise about your case without knowing all the facts. Additionally, my response does not create an attorney-client relationship. You can contact my office to schedule an appointment if you would like to have me represent you.
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It all depends upon the facts of the case. Generally, legal fees to defend personal legal actions are non-deductible. However, if the crime had anything to do with your business, then you may have a position to take the deduction as a misc. itemized deduction on Schedule A of your tax return. Even if you do, you may get little or no benefit due to the Alternative Minimum Tax.
Generally, criminal case are 100% personal and have no affiliation with your business. But, there are exceptions, such as crimes in the workplace.
Marty Davidoff, firstname.lastname@example.org, 732-274-1600. This answer is provided for general information only. You should seek advice from an attorney or tax professional.
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