What types of legal fees can I claim as deductions on my tax return?

TurboTax Online:

• Answer the initial Personal info interview questions if you haven't already. This unlocks 2024 tax return.
• From 2024 tax return, under Add to your return, enter other in the search bar. Then select Other deductions.
• Claim your applicable legal fees at Other Deductions.

TurboTax Desktop

• Select the Find tool in TurboTax and enter miscellaneous in the search bar. Then select Miscellaneous Deductions, and select Go.
• Claim your applicable legal fees at Other Deductions.

You might be able to claim legal fees related to income tax preparation if:

• You paid legal professionals for advice or help in responding to a request to review your income, deductions, or credits by the CRA; or
• You paid fees to legal professionals to represent you to object to (or appeal) an assessment or decision under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan (CPP), or Quebec Pension Plan (QPP)

You might be able to claim legal fees to collect or establish a right to collect salary, wages, or other amounts related to employment. This includes benefits or vacation pay that are owed to you, even if such actions are unsuccessful in the end.

Any award to cover legal fees or expenses (i.e., via a court order or settlement) will reduce the amount of legal fees you can claim by that amount.

If you're self-employed, you might be able to claim legal and accounting fees paid to professionals for advice, services, and consulting. You might also be able to claim services related to ‌the following:

• Keeping records or preparing and filing income tax and GST/HST returns; or
• Filing an objection or appeal to an assessment for income tax, CPP or QPP, or employment insurance (EI) premiums

Legal and other fees incurred to buy capital property (for example, a boat or fishing materials) aren't deductible.

You might be able to deduct legal fees to support a claim to make child support payments non-taxable.

Legal fees paid to obtain a separation, divorce, or establish custody or visitation arrangements for a child aren't deductible. Similarly, for the person who must pay support, legal fees paid to establish, negotiate, or contest the amount of support payments aren't deductible.

You might be able to deduct legal fees if you paid to collect (or establish a right to collect) a retiring allowance or pension benefit (up to the amount of the retiring allowance or pension income you received that year, but less any amounts transferred to an RRSP or registered pension plan).

In some circumstances, these legal fees may be carried forward for up to seven years.

If you own rental property, you might be able to deduct the following types of accounting and legal fees:

• Fees for services rendered to prepare leases or collect overdue rents, to cover bookkeeping services, audits of your books and records, and preparation of financial statements; or
• Fees for advice and help to prepare the tax return and any related information returns needed related to the operation of the rental property.

Legal fees paid to buy a rental property can't be deducted from gross rental income. However, these legal fees may be added to the cost of the land, the building(s), or both.

Legal fees incurred during an adoption period may be claimed against income, to the maximum amount allowable for each adopted child.

For more information, refer to the Adoption Expenses page on the CRA website.