Attorneys Fees - Deductible?


B

bhata

As I am dealing with my aged father's finances now, I was
wondering if his attorneys fee for working on his Living Trust
is deductible.

TIA
 
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B

Bill Brown

As I am dealing with my aged father's finances now, I was
wondering if his attorneys fee for working on his Living Trust
is deductible.

TIA
You describe non-deductible personal expenses.
 
R

removeps-groups

You describe non-deductible personal expenses.
Since this is money related, wouldn't this be an itemized deduction
subject to the 2% of AGI limitation (which often makes it useless
anyway :).
 
A

Alan

Bill said:
You describe non-deductible personal expenses.
Not necessarily. If the attorney who prepared the document is
willing to break out the fee expended for providing tax advice or
tax planning (typically quite low or zero for a revocable trust)
or if the attorney will break out the fee expended for the
management, conservation or maintenance of property held for the
production of income (this would only be available if the trust
was funded with income producing property) then there might be a
deductible amount.

Usually, the amount is zero or negligible and attorneys don't
break down their fee.
 
A

Arthur Kamlet

Since this is money related, wouldn't this be an itemized deduction
subject to the 2% of AGI limitation (which often makes it useless
anyway :).

"Money Related" does not mean it is deductible.
 
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S

Stuart Bronstein

Alan said:
Not necessarily. If the attorney who prepared the document is
willing to break out the fee expended for providing tax advice or
tax planning (typically quite low or zero for a revocable trust)
or if the attorney will break out the fee expended for the
management, conservation or maintenance of property held for the
production of income (this would only be available if the trust
was funded with income producing property) then there might be a
deductible amount.
Exactly. Though for me a primary purpose of the trust (when the
trustor is married) is tax planning (in community property states it
includes both income tax and estate tax planning), so I generally
attribute a fairly large part of the fee to that. Merely avoiding
probate can be done in other much cheaper ways.
Usually, the amount is zero or negligible and attorneys don't
break down their fee.
Yup. That, too.

Stu
 
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