question.jpgIn Federal Income Tax

What professional advice expenses are deductible?

You can deduct the fees paid in connection with tax return preparation or dealing the IRS regarding an audit. In addition, you can deduct legal expenses if the legal dispute was directly related to the course of your business or employment, or involved property which produced income - but you cannot generally deduct legal fees related to personal lawsuits.

These fees are included in the miscellaneous deductions and are therefore subject to the 2% floor (collectively with all other miscellaneous deductions).