Today TaxMama hears from John in Vermont, who wants to know “I am presently in the midst of a fairly messy divorce with the main fighting being over income producing assets. Are the legal expenses associated with these assets deductible?”
I really hope there’s a way you two can sit down and talk and just work it out.
But, sometimes, you just can’t – or you’d still be married. Sigh.
Some of the legal expenses are deductible.
If you have issues about children and child support – not those expenses.
If you have issues about income producing assets, including your retirement plan, or your business – yes, those will be deductible.
Alimony issues – yes – because alimony produces taxable income or expense.
In general, if the legal time is spent on tax generating issues, it’s deductible.
I’ve handled several audits where the fees were in excess of $50,000 per year and IRS has accepted the deductions.
Of course, I had really good documentation from the attorneys that these costs were above and beyond the costs for a usual divorce – and they spelled out the fee breakdown.
It’s worth paying them to do that for you.
buy viagra generic https://mexicanpharmacyonlinerx.net over the counter
Good luck – in all respects!
And remember, you’ll find answers to questions about divorce and all kinds of tax issues, free.
Where? Where else? At TaxMama.com
buy actos generic https://myindianpharmacy.net/actos.html over the counter
- Ask TaxMama :: Where taxes are fun and answers are free