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Edited version of private advice
Authorisation Number: 1052303759575
Date of advice: 10 September 2024
Ruling
Subject: Deduction - legal expenses
Question 1
Are you entitled to a deduction for your legal expenses?
Answer 1
Yes.
Based on the information provided to the Commissioner you can claim a deduction for the legal expenses.
The legal expenses have the relevant connection with the derivation of your assessable income.
You sought the services of a solicitor to assist you with your income protection claim through your superannuation fund to receive income protection payments which are ordinary income.
The legal expenses are an allowable deduction under Section 8-1 of the Income Tax Assessment Act 1997 (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
You submitted a claim for income protection payments through your super fund.
Initially your claim was denied.
You sought the services of a solicitor to appeal the initial decision by the insurance company for the income protection payments.
Your appeal was successful, and you were paid for income only and for lost income in previous years.
You have declared your income protection payments in the relevant income tax return.
Relevant legislative provisions
Income Tax Assessment Act 1997 section 8-1