Deductable Legal Fees?


G

Gary

In 2004 I enlisted the services of a lawyer to review an employment
agreement that I had with my employer, to give me advice on whether
moving on to another job would violate it. The total fees were around
$650. Would this be deductable on my 2004 taxes?
 
Ad

Advertisements

P

Paul A Thomas

Gary said:
In 2004 I enlisted the services of a lawyer to review an
employment agreement that I had with my employer, to give
me advice on whether moving on to another job would
violate it. The total fees were around $650. Would this
be deductable on my 2004 taxes?
Possibly, on Schedule A, Line 22 if at all.
 
R

rick++

No. Only mandatory employment expenses above 2% AGI.
Investigating changing jobs doesnt qualify.
In a profession where employment contracts are mandatory
or customary, legal fees might qualify.
 
S

Shyster1040

Yes, but only as a miscellaneous itemized deduction and thus
subject to the 2% of AGI minimum floor and the phase-out
provisions. See line 20 on Schedule A to Form 1040, and the
accompanying instructions.
 
A

Arthur L. Rubin

rick++ said:
No. Only mandatory employment expenses above 2% AGI.
Investigating changing jobs doesnt qualify.
In a profession where employment contracts are mandatory
or customary, legal fees might qualify.
Where does it say "mandatory". The term of art is
"reasonable and necessary".
 
S

Stuart Bronstein

Arthur said:
rick++ wrote:
Where does it say "mandatory". The term of art is
"reasonable and necessary".
I don't know if it applies in this situation, but as I
recall some employee expenses can only be written off if the
expenditure is both required and not reimbursed by the
employer.

Stu
 
Ad

Advertisements

H

Harlan Lunsford

Arthur said:
rick++ wrote:
Where does it say "mandatory". The term of art is
"reasonable and necessary".
minor point perhaps, but you mean "ordinary and necessary",
plus must be reasonable.

ChEAr$,
Harlan Lunsford, EA n LA
Thu 10 Feb 2005
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top