Steps to add legal fees:
- Sign in to your tax return
- On the left-hand side of your screen select the Income tab
- Select the Employment Expenses tab
- Click Yes
- Next, select the bubble that applies to you and then click Continue
- Check off the Other Employment Expenses box and click Continue
- On the next page, the first line of the Other Expenses page is Accounting and Legal Fees. You can enter the amount here
- When you are done click Continue at the bottom of the screen to save your information
As a rule, legal fees are deductible just like any other business expense you have paid the fees to earn income. For example, if you operate a small business and you hire a lawyer to draft a contract for you or collect unpaid debts, those fees are deductible. Fees paid for personal reasons, such as a divorce, are not deductible.
For more information please refer to the following Canada Revenue Agency (CRA) article:
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