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You just paid a lawyer, maybe to fight a CRA reassessment, collect unpaid wages, or handle a divorce. Our legal fees tax deductible in Canada. It depends entirely on why the fee was paid and I'll show you exactly which fees qualify and which don't. Hello, I'm David Rotfleisch, a Canadian tax and business lawyer certified by the Law Society of Ontario as a specialist in taxation. Welcome to the TaxPage Tax Channel. If you're self-employed or run a business, legal fees to earn business income, contracts, debt collection, GST or HST disputes are generally deductible under Section 9 and paragraph 18, 0.1, capped at the amount you actually receive formal objection is ever filed. Family law is trickier. Enforcing an existing support order is deductible for the recipient. Establishing spousal support for the first time is not, though establishing child support is. And if you're the one paying support, defending against enforcement isn't deductible either. Filing a voluntary disclosure, timing matters. Fees to prepare it usually aren't deductible. But once the CRA accepts your disclosure, fees to defend your position afterward are. Clients are often surprised that whether a legal fee is deductible has nothing to do with how much it costs and everything to do with why it was incurred. Talk to an experienced Canadian tax lawyer before you sign the engagement letter, not after you file your return. Contact one of our Canadian tax lawyers at taxpage.com. We are here to help.

You just paid a lawyer, maybe to fight a CRA reassessment, collect unpaid wages, or handle a divorce. Our legal fees tax deductible in Canada. It depends entir…