TTB 4-24 - Certain Attny & Acctng fees?

[AZ-Tax]

I cannot locate it on the list. My client has a rather large amt of divorce legal fees and I told him the attny fees need to be related to generating income but he is having a hard time believing me so I thought I would show him. Does anyone have the link to the IRS website on this? Much appreciated.

[dyne]

Pub 529 discusses this issue. I suggest that you refer this client elsewhere. You do NOT
need those who doubt you. I will not tolerate such clients.

[oceanlovin'ea]

Look at TTB pg 4-26 also.

I had a client this year that had legal fees for redoing a trust document. The attorney told them it was tax deductible based on the statement that "certain legal fees" are deductible.

I told them I didn't think that included the trust. But I put it on the return because they still didn't reach 2% of AGI so they didn't get to use it. But they were happy I put it on return. I wouldn't stand up to an audit I don't think.

But look at pg 4-26. That might help you.

Linda, EA

[AJsTax]

Trust does usually

Look at TTB pg 4-26 also.

I had a client this year that had legal fees for redoing a trust document. The attorney told them it was tax deductible based on the statement that "certain legal fees" are deductible.

I told them I didn't think that included the trust. But I put it on the return because they still didn't reach 2% of AGI so they didn't get to use it. But they were happy I put it on return. I wouldn't stand up to an audit I don't think.

But look at pg 4-26. That might help you.

Linda, EA

count as deductible expense on the premise that the document is protecting income from excessive taxation. I have seen several attorney letters to that effect this year. And I find no reason to doubt that from the information I have found so far.

[AJsTax]

totally disagree

Pub 529 discusses this issue. I suggest that you refer this client elsewhere. You do NOT
need those who doubt you. I will not tolerate such clients.

I would much rather have a involved and educated client than one that does not care and just dumps everything on me and picks it up once a year and never even bothers to look at anything. Bring on the questions every day. I might, no usually I will. learn something more.

[AZ-Tax]

Dyne & AJ, you are both correct depending on the client

I agree with AJ that the more our clients are educated the easier it is for us tax preparers.
but if the client does NOT want to learn from this and does it again next year, then Dyne is correct.

[AJsTax]

I agree with AJ that the more our clients are educated the easier it is for us tax preparers.
but if the client does NOT want to learn from this and does it again next year, then Dyne is correct.

You are correct also. If they totally refuse to believe the research we give them, then time to move on. I have not had to do that often, on a couple times that I can think of .