Here is a list of legal fees that are tax deductible:
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- Legal fees incurred in connection with a broad range of routine business functions such as preparing contracts, obtaining security for and collecting trade debts owing, preparing financial records and minutes of shareholders and directors meetings, watching legislation affecting the business operations, and in respecting of financing costs.
- Legal fees incurred to prepare or process an objection or appeal of a tax assessment such as income tax, employment insurance, Canada pension plan, and sales tax such as Goods and Services Tax/Harmonized Sales Tax (GST/HST), or assessment of income tax by a foreign government if the tax is eligible for a foreign tax credit.
- Legal fees incurred to prosecute or to defend most tort, contract, or other civil claims arising in the ordinary course of business
- Legal fees incurred in connection with requesting advance income tax rulings
- Legal fees incurred in connection with successful corporation acquisition (has to be capitalized)
- Legal fees incurred to collect or establish a right to salary or wages owed by an employer or former employer.
- Legal fees paid to collect or establish a right to a pension benefit or retirement allowance including a right to damages for wrongful dismissed. Claimed on Line 221.
- Legal fees paid to collect, establish, or increase the amount of child or spousal support.
- Legal fees (in connection with the sale of old residence and the purchase of new residence) that is part of deductible moving expenses
- Legal fees (related to adoption of a child) that is part of adoption expense credit
- Legal fees incurred to try to make child support payments non-taxable. Claimed on Line 232.