2007-01-04 11:00:26 · 2 answers · asked by williamlh2002 2 in Business & Finance ➔ Taxes ➔ United States
It depends on what you are paying he attorney for. If the attorney's fees relate to determining your taxes, you can deduct them. Fees for writing a will are probably not deductible. Ask the attorney. Compared to whatever else you paid for, this should be an inexpensive question.
2007-01-04 11:07:03 · answer #1 · answered by STEVEN F 7 · 0⤊ 0⤋
Attorneys' fees incurred in the production of income, say suing someone who owes your side business money, are deductible. Attorneys' fees incurred in acquiring or protecting a capital asset are added to the cost basis of the asset. Attorney fees for such things as defending that DUI or a custody fight are not deductible. There is authority in the Treasury Regulations that the spouse fighting for alimony, which is ordinary income, may deduct the cost of attorneys' fees incurred to obtain or increase the alimony (as opposed to child support which is not income). Of course, the spouse getting the alimony almost never pays the attorneys' fees.
2007-01-04 19:31:36 · answer #2 · answered by mattapan26 7 · 2⤊ 0⤋