Ask a tax advisor on the topic of Income tax return

Court and attorney fees

March 9, 2011 | 20,00 EUR | answered by Dipl.BW/SB Ulrich Stiller

Hello, can I claim the following expenses in my income tax return:
1. Court and procedural costs of the forced auction of my property
2. Costs for the divorce lawyer
3. Costs for the lawyer in case of asset restructuring (here: negotiation with creditors from the forced auction for remaining debt of 40 €)

For example, as extraordinary burdens or advertising costs?

Thank you, regards
US

Dipl.BW/SB Ulrich Stiller

Dear inquirer,

Thank you for your inquiry, which I would like to answer based on your information and in the context of your situation as follows:

The actual court and attorney costs of the divorce, excluding divorce settlement costs and asset distribution, are deductible as extraordinary expenses according to § 33 para. 1 EStG.

Regarding the costs associated with the forced auction of the condominium and the attorney fees for asset restructuring, I do not see any deduction possibilities pending a thorough examination of the facts, as there are likely no allowable deductions for either employment-related expenses or business expenses.

I hope I was able to assist you.

Best regards,

Ulrich Stiller
Tax consultant/Diploma in Business Administration