[talleyman]

If you use money that was taxed to pay a lawyer to fight a parking ticket you can't deduct his fee. Why should you be able to deduce his fee for any other reason?

General rule: expenses incurred for the production of income are deductible, fines and penalties are not.

[Blessed]

Simple answer is make the lawyers fees after taxes in the initial pre-litigation agreement.If this was not done bring action against lawyer for hiding facts in initial negotiations.