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I have received from my lawyer an estimate of costs to provide me with a legal opinion on a proposed business venture. I am waiting on the opinion before I proceed. I have not yet generated any revenue or incurred any other costs in connection with this propsed venture. My question is: Is there available a tax credit for these legal expenses even though I have not yet offered any services?
Thanks in advance.
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Are Legal Opinions Tax Deductible? Obtaining a legal opinion for a potential business startup.
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#2
Joe 
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Posted 07 February 2008 - 09:02 PM
SomeGuy, on Feb 7 2008, 11:50 AM, said:
I have received from my lawyer an estimate of costs to provide me with a legal opinion on a proposed business venture. I am waiting on the opinion before I proceed. I have not yet generated any revenue or incurred any other costs in connection with this propsed venture. My question is: Is there available a tax credit for these legal expenses even though I have not yet offered any services? Thanks in advance.
Your PDA (Profesionally Designated Accountant) will take care of that when he files your taxes, and will know all the specific details of your circumstances. Your Professional Lawyer is for legal opinions, your Professional Accountant is for Tax advice and preparation...
Tax issues are likely much more complicated that the issues your Lawyer provided his professional opinion on.....
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#3
SomeGuy
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Posted 07 February 2008 - 11:47 PM
Thanks for your quick reply. I understand that my lawyer looks after legal advice and my accountant looks after my taxes - but, as I dont use an accountant for taxes my question is simply : can I write off my lawyers fees to get his opinion on a new business on my personal income tax?
#4
Joe
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Posted 07 February 2008 - 11:50 PM
SomeGuy, on Feb 7 2008, 03:47 PM, said:
Thanks for your quick reply. I understand that my lawyer looks after legal advice and my accountant looks after my taxes - but, as I dont use an accountant for taxes my question is simply : can I write off my lawyers fees to get his opinion on a new business on my personal income tax?
Perhaps it would be more appropriate to instead ask your Professionally Designated Accountant for a Tax opinion, and obtain the simple legal opinion on the proposed business venture from an internet forum...
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#5
Bob Kerr
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Posted 08 February 2008 - 04:14 AM
SomeGuy
Joe in his typical fashion is being very diplomatic. This forum is for Tax Practioners. We do not offer to the general public free tax advice. We offer offer opinions between ourselves. Both Joe & I could answer basically your question but suggest that you consult a qualified professional of your choice to get proper tax advise
Joe in his typical fashion is being very diplomatic. This forum is for Tax Practioners. We do not offer to the general public free tax advice. We offer offer opinions between ourselves. Both Joe & I could answer basically your question but suggest that you consult a qualified professional of your choice to get proper tax advise
#6
JohnV
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Posted 08 February 2008 - 01:02 PM
Someguy
Apart from agreeing with Joe and Bob here, I'll add that the issue is far more complicated. We have absolutely no idea what "opinion" your lawyer is providing and what on, (some businesses require added registrations, adherance to specific regulations etc) so the answer to you for the moment is "it depends" and in the end it will be all, some or none and it will depend on your unique circumstance.
So take Joe and Bob's advice and seek appropriate legal and tax advice. Get the legal opinion you need (whether this legal opinion is tax deductible or not should not be a factor in your decision to enter the business) THEN hire a reputable accountant with experience with businesses of your type...because a good accountant with experience is worth far more than what you'll pay them.
Apart from agreeing with Joe and Bob here, I'll add that the issue is far more complicated. We have absolutely no idea what "opinion" your lawyer is providing and what on, (some businesses require added registrations, adherance to specific regulations etc) so the answer to you for the moment is "it depends" and in the end it will be all, some or none and it will depend on your unique circumstance.
So take Joe and Bob's advice and seek appropriate legal and tax advice. Get the legal opinion you need (whether this legal opinion is tax deductible or not should not be a factor in your decision to enter the business) THEN hire a reputable accountant with experience with businesses of your type...because a good accountant with experience is worth far more than what you'll pay them.
#7
SomeGuy
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Posted 08 February 2008 - 08:50 PM
JohnV, on Feb 8 2008, 08:02 AM, said:
Someguy
Apart from agreeing with Joe and Bob here, I'll add that the issue is far more complicated. We have absolutely no idea what "opinion" your lawyer is providing and what on, (some businesses require added registrations, adherance to specific regulations etc) so the answer to you for the moment is "it depends" and in the end it will be all, some or none and it will depend on your unique circumstance.
So take Joe and Bob's advice and seek appropriate legal and tax advice. Get the legal opinion you need (whether this legal opinion is tax deductible or not should not be a factor in your decision to enter the business) THEN hire a reputable accountant with experience with businesses of your type...because a good accountant with experience is worth far more than what you'll pay them.
Apart from agreeing with Joe and Bob here, I'll add that the issue is far more complicated. We have absolutely no idea what "opinion" your lawyer is providing and what on, (some businesses require added registrations, adherance to specific regulations etc) so the answer to you for the moment is "it depends" and in the end it will be all, some or none and it will depend on your unique circumstance.
So take Joe and Bob's advice and seek appropriate legal and tax advice. Get the legal opinion you need (whether this legal opinion is tax deductible or not should not be a factor in your decision to enter the business) THEN hire a reputable accountant with experience with businesses of your type...because a good accountant with experience is worth far more than what you'll pay them.
Thanks for your thoughts. I apologize for posting my consumer request in the professional area of the forum. I will certainly pursue a professional accountant, but am experiencing some difficulty in finding someone who has a working knowledge in the business model I am researching. It is likely the first of its kind in Canada. I will continue searching - thanks for your direction.
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