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Edited version of private advice
Authorisation Number: 1052248799453
Date of advice: 7 May 2024
Ruling
Subject: Deduction - legal expenses
Question
Is the taxpayer entitled to claim a deduction for the Legal Expenses under section 8-1 of the Income Tax Assessment Act 1997 (ITAA 1997)?
Answer
Yes. The legal expenses in relation to you seeking to claim the XXXXX super invalidity benefits relate to your assessable income and are deductible under section 8-1 of the ITAA 1997.
This ruling applies for the following period:
Year ended 30 June 20XX
The scheme commenced on:
1 July 20XX
Relevant facts and circumstances
The client suffered from post-traumatic stress disorder and major depressive disorder over a period of time.
The psychiatrist advised the client to consider making a claim against the XXXXX for injuries suffered during the years of service.
Your client contacted a solicitor to help with their claim against the XXXXX.
The solicitor provided advice and prepared all the necessary work for the invalidity benefits claim from XXXXX.
On XX month XXXX, the XXXXX approved the client's application.
A few months later, the client received their pension in arrears into their nominated bank account, and has received regular fortnightly payments.
In the same month, the client received the solicitor's invoice for services rendered.
The following month, the client paid the solicitor's invoice.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1