"My spouse hired a lawyer to take legal action and negotiate a severance package with <my spouse's> employer after constructive dismissal. Employer settled. Employer paid some damages, $2000 toward legal fees, 2 years salary, unused 2018 vacation buyout, and contribution to pension plan while she is being paid for the 2 years. Question, can my spouse claim the resulting $20,000 in legal fees as a tax deduction ? I realize the $2000 that the employer paid towards legal fees counts as income so the $2000 will be offset at least. Lawyer said to seek accountant advice. Is accountant advice then tax deductible ?
Sorry to hear you had to go through all of this- Please see the following link -As per CRA- https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...
Sorry to hear you had to go through all of this- Please see the following link -As per CRA- https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-re...