Private ruling: Legal Expenses - Deductions
Date of advice: 17 December 2019
Published: February 2020
Ruling period: Year ended 30 June 2019
Date scheme commenced: 1 July 2018

Ruling: Q1: Are you entitled to a deduction for legal expenses incurred to obtain an Invalid Pension? | A1: Yes, the legal expenses you incurred to obtain an invalidity pension resulted in you gaining assessable income. There is a clear connection between the assessable income and the expense. The expenses were not incurred in respect of income that was capital, private or domestic in nature. As such, the legal expenses were incurred in gaining your assessable income and are deductible under section 8-1 of the ITAA 1997.

Relevant facts and circumstances: This ruling is based on the facts stated in the description of the scheme that is set out below. If your circumstances are materially different from these facts, this ruling has no effect and you cannot rely on it. The fact sheet has more information about relying on your private ruling. You were employed. In XXXX you sought legal representation regarding an invalidity claim. You left your job in June XXXX. You received an invoice for $X,XXX on XXXX and you have subsequently paid it. You are now receiving a pension from your superannuation fund.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 8-1 | Income Tax Assessment Act 1997 subsection 15-2(1)