2007-03-21 06:40:09 · 5 answers · asked by DOUG H 1 in Business & Finance ➔ Taxes ➔ United States
If the legal expenses are associated with creating an instrument for the purpose of "preserving income" - they are deductible as a Schedule A Miscellaneous Deduction, subject to the 2% limitation of AGI.
Go to irs.gov and do a search for Schedule A Miscellaneous Deductions. There you will find examples of what is deductible and what is not.
2007-03-21 06:54:47 · answer #1 · answered by bold4bs 4 · 1⤊ 0⤋
Legal fees for drawing up a trust would most likely NOT be deductible, any more that drawing up a will. This assumes the trust is for DISTRIBUTION of your assets, not actual tax or investment advice.
2007-03-21 14:31:36 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
bold is correct. Not every legal fee is deductible. And not every lawyer can draft a competent trust agreement - be very careful.
2007-03-21 14:03:05 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes, any legal fees paid can be deducted on your taxes if you itemize your deductions. There is a 2% floor to misc. deductions like this one so you must accumulate 2% of your AGI in deductions before you can see the benefit of these deductions.
2007-03-21 13:47:03 · answer #4 · answered by peachygurl86 2 · 0⤊ 2⤋
paying fees is an expense aint it? or is dat lawyer gonna do it for free?
2007-03-21 13:48:12 · answer #5 · answered by Anonymous · 0⤊ 2⤋