Can I claim legal fees that I paid to make my ex spouse sell the home?

[tamaralorinczi]

I had to hire a lawyer to force my ex to list the house for sale after our separation. Can I claim the legal costs on my tax return? If so, where?

And the funds are still held in trust from the sale of the home.  It sold in 2016 but the money has not yet been released.  Do I have to claim this as income in 2016 even though no money has been received yet?

[TurboTaxTerry · Accepted solution]

The Legal Expenses would be used to reduce any applicable Capital Gain on the sale of a Principal Residence. If you occupied the home for all of the time that you owned it there would not be a Capital Gain and therefore the legal expenses would not be helpful. You will need to indicate that you disposed of a property in 2016 under the "Income" tab and "Investments" then check the last box, "Disposed of a Property".

If any of the legal expenses related to efforts to obtain spousal support you could deduct that amount separately.