Ask Tom Anything - May 2024

Tax questions answered for paid subscribers only

In the April 2024 Ask Tom Anything edition, Lawrence asked:

I have a client that worked for FTX. The client was subpoenaed in court and also by the U.S. House of Representatives in connection with the FTX fraud case. The client incurred substantial legal fees in connection with this matter. Are these legal expenses deductible? If so, would these be reported on Schedule 1, Line 24(i)?