Do most of you take a percentage of an attorneys fees when a trust is drafted for a couple. The invoice states "Services rendered in health, estate and family planning" $2400. As with divorce costs a percentage is tied into tax planning. 50%? What do you think?
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Hmm, interesting
It would seem that if the invoice had to spell it out as to what charges are for tax planning with a divorce, it would have to here as well.
From Pub 529:
"You can usually deduct legal expenses that you incur in attempting to produce or collect taxable income or that you pay in connection with the determination, collection, or refund of any tax.
You can also deduct legal expenses that are:
Related to either doing or keeping your job, such as those you paid to defend yourself against criminal charges arising out of your trade or business,
For tax advice related to a divorce if the bill specifies how much is for tax advice and it is determined in a reasonable way, or
To collect taxable alimony."If you loan someone $20 and never see them again, it was probably worth it. -
Modify the invoice
I agree. The lawyers, well ... most of them, know how to word the invoice.
It's really no different from additional information I place on a client invoice for tax prep charges that otherwise would disappear due to the 2% haircut. Such would include "$xx for preparation of Sch E" or "$yy for preparation of Sch C." And before you ask, I do not charge "by the form." I gave up that madness when I left the place with those ugly green boxes everywhere.
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I have client get a detailed invoice from atty that indicates the amount of the total bill that was for income retention.Believe nothing you have not personally researched and verified.Comment
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