Are legal fees tax deductible in a construction accident case?

The answer to this question is it depends. In Washington, legal fees are tax deductible if the construction accident case is considered a personal injury case. The IRS code allows for such litigation costs to be deducted from income taxes if the legal fees are related to a claim of physical injury or physical sickness. This includes medical expenses necessary to diagnose or treat the injury or illness. If the construction accident case is related to a breach of contract, then one cannot ordinarily deduct those legal fees on their state or federal tax return. It is important to speak with a qualified lawyer or tax professional to determine if the costs associated with the construction accident case are tax deductible or not. It often depends on the nature of the dispute and the outcome of the case. Generally, legal fees are considered to be a deductible expense in the year they were paid even if the case is still ongoing. To sum up, legal fees from a construction accident case may be tax deductible in Washington if the case is considered a personal injury case. However, it is important to speak to a qualified lawyer or tax professional for more specific information related to your particular case.

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