Forbes, Michael Jackson Death Doctor Can Deduct His Legal Fees, by Robert W. Wood (Wood LLP, San Francisco):

Dr. Murray should be able to deduct his fees as a business expense even though he was convicted. After all, he was treating Michael Jackson and being paid for it. Whether facing a civil malpractice trial or a criminal trial, his legal expenses relate to his trade or business. Technically expenses must be ordinary, necessary and reasonable to be deductible but that doesn’t take much. In the tax world, an expense is “ordinary” even if it is once in a lifetime. Necessary is also easy. If Dr. Murray gets a bill from his lawyers and pays it, that’s necessary. And reasonable? If a lawyer can charge it and someone pays, it’s probably reasonable. That means no matter how high, Dr. Murray’s defense costs are probably all deductible.