Are eviction and legal fees tax deductible for a landlord?

What goes on line 10

Schedule E line 10 is Legal and other professional fees. The instructions say you can deduct fees for tax advice and for preparing the tax forms for your rental properties. Publication 527 likewise lists legal and other professional fees among deductible rental expenses.

What is added to basis instead

The same instructions say legal fees to defend or protect title, to recover property, or to develop or improve it are not deducted. They are capitalized, which means added to the property's basis. That is a different treatment from a fee you pay to run the rental.

Eviction costs and unpaid rent

Court filing fees, a process server and a lawyer to evict a tenant are costs of running the rental, which fit the Legal and other professional fees line. Do not confuse them with unpaid rent. A landlord who reports rent when it is paid generally has no deduction for rent the tenant never paid, because that income was never counted. See our guide on deducting unpaid rent.

Example a made-up owner pays a $150 court filing fee, a $75 process server and a $900 attorney fee to evict one tenant, and $250 for rental tax preparation. Line 10 for the year is $150 + $75 + $900 + $250 = $1,375, assuming the preparer agrees all four are ordinary rental costs.

Tenant laws often let a court award fees or costs to the landlord. If you collect them, tell your preparer, since money recovered affects what you deduct.

Getting invoices you can use

The cleanest records come from asking the lawyer to bill each matter separately. One invoice that mixes a lease review, an eviction and a title question makes your preparer split it later, and the split is a guess. Ask for the property address and the work performed on the invoice.

• One matter per invoice, with the property named.
• A note saying whether the fee was for running the rental or for ownership, such as a boundary or title dispute.
• The court filing receipt with the case number.
• A copy of any amount the court ordered the tenant to pay you.

If a tenant pays your fees under a court order, the amount you recover is generally income in the year you receive it, and the fees you paid are still your expense. Keep both in the same property so the net result is visible. Costs of a suit that involves buying or selling the property belong with the purchase or sale, not with the yearly expenses.

Questions to bring to your tax preparer

• Which of this year's invoices were for running the rental, and which were about ownership of the property?
• Do any fees need to be added to basis instead of deducted?
• How should I report an amount the court ordered the tenant to repay me?
• Is the lawyer's retainer an expense now or when the work is done?

How DoorKeeping handles it

DoorKeeping files a bill under the property it belongs to and maps legal fees to the Legal and other professional fees line, with the invoice attached. DoorKeeping gives no tax advice. Your tax preparer decides how a rule applies to you, and your state may add its own rules.

Sources

1. IRS, Instructions for Schedule E (Form 1040), 2025, read Oct 30, 2026
2. IRS, Publication 527, Residential Rental Property, read Oct 30, 2026

Questions

Where do I deduct an attorney fee for an eviction?

Generally on Schedule E line 10, Legal and other professional fees. Ask your preparer to confirm for your facts.

Which legal fees cannot be deducted right away?

The IRS instructions say fees to defend or protect title, recover property, or develop or improve it are added to the property's basis.

Are bookkeeping fees for the rental on the same line?

Yes, other professional fees for the rental generally go on line 10 as well.