What legal expenses are deductible?

What legal expenses are deductible depends on jurisdiction and whether expense is business or personal, with business legal expenses generally deductible. Legal expenses deductible includes business legal expenses that are ordinary and necessary for business operations, deductible under tax law in many countries including New Zealand, Australia, US, and UK, with deductible legal expenses including legal fees for contract drafting and review for business contracts, employment law advice for business including employment agreements and disputes, debt collection legal costs for business debts, tax advice and compliance including tax return preparation for business, litigation costs for business disputes including breach of contract and property disputes for rental properties, and legal costs for buying or selling business assets may be capitalized not deductible immediately. In New Zealand, IRD allows deduction for legal expenses if incurred in deriving assessable income or in course of business, with legal expenses for rental property including tenancy disputes deductible against rental income, and for businesses, legal fees for employment issues and contract disputes deductible, but legal expenses for personal matters like family law, divorce, and personal injury not deductible, and legal expenses for capital matters like buying personal home not deductible but may be included in cost base for capital gains. In US, IRS allows business legal expenses deductible under Section 162. So legal expenses deductible are business related legal fees including contract, employment, debt collection, and business litigation, deductible as business expense, while personal legal expenses like divorce and personal injury generally not deductible, with capital legal costs added to asset cost base.