My client received a 1099-misc form for "lemon law" settlement and also the attorney fees are part of box 3. how do I deduct the attorney fees?

[Mbetanco]

Form 1099-Misc, box 3 $73,75.96
Actual money received in a check $50,625.50 
Attorney fees $23130.50

[Just-Lisa-Now-]

Hopefully they didn't spend it all and can pay the taxes on that 73k.

TCJA took away the ability to deduct most personal legal fees.

https://turbotax.intuit.com/tax-tips/tax-deductions-and-credits/can-i-deduct-legal-fees-on-my-taxes/...

[Terry53029]

Don't forget only the amount over the price of the car is taxable, and as Lisa  said the attorney fees are not deductible

[taxes96786]

Make an adjustment on the Actual Money received line to subtract the amount the client is out of pocket (originally paid for the car).

[BobKamman]

https://www.dailyjournal.com/articles/360753-the-taxman-cometh-for-lemon-law-litigants