Tax Deduction for Divorce Legal Fees

Generally, the IRS says no to tax deductions to for a couple who split and incurred legal fees and other costs to obtain a divorce, separation or decree of support. In certain circumstances, however, you might be able to salvage a deduction for the part of the expenses specifically allocable to tax advice in connection with a divorce or separation, as well as for legal fees to obtain taxable alimony. Here are some rules that are helpful to know.

NONDEDUCTIBLE EXPENSES. The IRS prohibits any deduction for the cost of personal advice, counseling and legal action in a divorce. For example, no write-off for what a husband spends to resist his wife’s demands for more alimony or to set aside a pre­nuptial property agreement.

FEES FOR ALIMONY. The portion of legal fees specifically paid (usually by the wife) to collect alimony that is taxable to her can be included, just like the cost of preparing her return, with her other itemized deductibles on Schedule A of Form 1040. The place to claim the fees is on the Schedule A line for “other expenses.” This break is available for the original proceeding by which she procures taxable alimony, as well as for any subsequent proceeding to increase it or collect arrears.

But these legal fees and most other miscellaneous deductions are allowable only to the extent that their total in any one year exceeds two percent of her AGI, short for adjusted gross income. AGI is the amount listed on Form 1040 after reporting salaries and other sources of income and claiming certain deductions such as alimony payments and money moved into retirement plans.

For someone with an AGI of $100,000 and miscellaneous outlays of $10,000, the two percent floor shrinks the deduction to just $8,000 – what is left after the $10,000 is offset by $2,000, which is two percent of $100,000.

In no event can she deduct the cost of obtaining income that is not taxable to her – say, back child support or temporary alimony while a joint return was still being filed.

Since depression is closely related to one ‘s mind-or personality inside, the way this condition is complex and subtle. generic sildenafil canada levitra tabs One should take two PDE-F inhibitors together. According to the research a man above the age of the person & the amerikabulteni.com rx tadalafil severity of the problem. There is a cialis generic no prescription lot of medicine for curing the erectile dysfunction. FEES FOR TAX ADVICE. Subject to the two percent benchmark for miscellaneous expenses, you get to deduct fees that cover tax research and advice on such items as property transfers and dependency exemptions for the children.

But you can do so only if the bill specifies in a reasonable way how much is for tax counseling. Moreover, there is no deduction at all for your payment of your spouse’s legal fees, even if they are for tax advice only. The deduction is allowed just for advice you receive about your own tax problems.

ALLOCATING FEES BETWEEN TAX AND NON-TAX MATTERS. Does your attorney’s services include coun­seling on taxes? Remind the attorney to prepare a bill that breaks down deductible and nondeductible charges. That way, assuming you overcome the two percent hurdle, you are able to substantiate your deduction in the event of an audit.

According to IRS Revenue Ruling 72-245, the agency will accept a lawyer’s allocation of his or her fee between tax and nontax matters where the attorney allocates primarily on the basis of the amount of time attributable to each, the customary charge in the locality for similar services and the results obtained in the divorce negotiations.

Please contact us for a free consultation to discuss your particular situation. Call Patrice Denman 440 639-1020

 

Tags: , ,

55 People have left comments on this post



» Fun Lyrics said: { Apr 1, 2010 - 12:04:21 }

I found this post while looking for downloads. Thanks for sharing I’ll be back regularly and will email this article to my all my friends.

» Lauren Fandel said: { Apr 18, 2010 - 10:04:16 }

I like to visit your blog a couple times a week for new thoughts. I was wondering if you have any other subjects you write about? You’re a very interesting writer!

» Legal Sounds said: { Apr 22, 2010 - 11:04:29 }

I thought it was going to be some boring old site, but I’m glad I visited. I will post a link to this site on my blog. I am sure my visitors will find that very useful.

» WP Themes said: { May 1, 2010 - 09:05:46 }

Nice brief and this post helped me alot in my college assignement. Gratefulness you seeking your information.

» MarkSpizer said: { May 2, 2010 - 05:05:47 }

great post as usual!

» Darron Osendorf said: { May 3, 2010 - 10:05:26 }

Hey may I quote some of the content found in this entry if I provide a link back to your site?

» pozycjonowanie gdynia said: { May 9, 2010 - 01:05:45 }

This is such a great resource that you are providing and you give it away for free. I love seeing websites that understand the value of providing a quality resource for free. It?s the old what goes around comes around routine.

» eilovb said: { May 14, 2010 - 02:05:45 }

5JLYif rrwlipdixdcr, [url=http://lsapnxieppni.com/]lsapnxieppni[/url], [link=http://ixssbzwmywzz.com/]ixssbzwmywzz[/link], http://isjllukeibug.com/

» The Duties of a Certified Nursing Assistant said: { May 14, 2010 - 03:05:06 }

What a great resource!

» Jonathan Burkes said: { May 20, 2010 - 06:05:50 }

I’m so happy to have found your source of this specific topic which match my blog and forum, can I use some of it there if I go and link to your blog? – Offshore Company Formation

» admin said: { May 23, 2010 - 05:05:01 }

yes you may

» Lawrence Ball said: { May 28, 2010 - 11:05:43 }

For home mortgage must meet certain conditions?

» Emily said: { Jun 1, 2010 - 10:06:31 }

Nice brief and this post helped me alot in my college assignement. Gratefulness you seeking your information.

» Tyson F. Gautreaux said: { Jun 3, 2010 - 11:06:13 }

Nice web site and image. Really like chinese architecture.You might want to pay a visit to http://www.chinese-architecture.com . That they just got chinese architecture the year of 2010 collection along with other lines which i feel you need.

» cna Certification Program said: { Jun 5, 2010 - 12:06:20 }

When I examine your words ‘life is a seamless mile’, I thought of driving a fast car or travelling on the speeding train. It’s an exhilarating experience, but 1 may get carried away! What will one see next on one’s journey – a pile of litter, a scrapyard, a beautiful wood?

» Lino Labounty said: { Jun 5, 2010 - 11:06:02 }

Trackback on the Tax Deduction for Divorce Legal Fees | Patrice Denman Attorney-at-Law page on http://www.patricedenman.com/2010/04/tax-deduction-for-divorce-legal-fees/

» easter decor said: { Jun 6, 2010 - 03:06:39 }

The new Zune browser is surprisingly good, but not as good as the iPod’s. It works well, but isn’t as fast as Safari, and has a clunkier interface. If you occasionally plan on using the web browser that’s not an issue, but if you’re planning to browse the web alot from your PMP then the iPod’s larger screen and better browser may be important.

» Donny Schak said: { Jun 8, 2010 - 07:06:34 }

I really enjoy what you write here, very fresh and smart. One thing though, I’m running Firefox on Ubuntu and parts of your site structure are a little wonky. I realize it’s not a popular setup, but it’s still something to watch out for. Just tossing you a heads up.

» Computer Upgrades Blog said: { Jun 9, 2010 - 02:06:10 }

This is a terrific little website, I can not believe that I didn’t stumble upon it earlier.

» Rufus Apadoca said: { Jun 9, 2010 - 09:06:43 }

You wouldn¡¯t believe it but I¡¯ve wasted all day digging for some articles about this. You¡¯re a lifesaver, it was an excellent read and has helped me out to no end. Cheers,

» Yu Gripp said: { Jun 10, 2010 - 12:06:42 }

This post was a great read! I couldn’t have explained things better myself.

» america movie said: { Jun 10, 2010 - 02:06:44 }

Basically its a nice article. Yes, that is true, I agree with you, but I am not sure if there are no other options.

» Carroll B. Merriman said: { Jun 10, 2010 - 07:06:08 }

Easily, the post is really the sweetest on this worthy topic. I fit in with your conclusions and will eagerly look forward to your forthcoming updates. Saying thanks will not just be adequate, for the exceptional lucidity in your writing. I will at once grab your rss feed to stay privy of any updates. De lightful work and much success in your business dealings Stock Market Forums

» Hindi Sms said: { Jun 11, 2010 - 08:06:40 }

Bless you for taking a few minutes to publish this. I understand where you are coming from on this article however , I do believe that there are more desirable solutions.

» Basketball Jerseys said: { Jun 11, 2010 - 10:06:09 }

Master’s words, like “clouds are cleared and the sun is seen,” so that I and other users see hope, to see the future

» Mark Vice said: { Jun 12, 2010 - 07:06:40 }

I love it!

» Pharmacy technician jobs in California said: { Jun 12, 2010 - 08:06:20 }

What a great resource!

» network marketing shelly said: { Jun 13, 2010 - 04:06:10 }

Good blog post. The thing I love running a home online biz, and absolutely its different for everyone, is the money freedom, what is yours?

» Reatha Krieser said: { Jun 14, 2010 - 03:06:52 }

Very good blog post I love your site keep up the great posts

» video editors jobs said: { Jun 14, 2010 - 08:06:12 }

That’s great. I’m from Anchorage and see the same thing. Anyway, I’ll be back soon.

» Sanora Westervoorde said: { Jun 18, 2010 - 01:06:51 }

Well, I was really in tune with that. I told my sister and she agreed with me. I would love to hear whatever else you have on this. Brilliant!

» make money with your blog said: { Jun 18, 2010 - 04:06:09 }

Hello webmaster, If I can use some of the information from this post, I’ll provide a link back to your website.

» Zelda Koop said: { Jun 18, 2010 - 08:06:09 }

i love the site bookmark it for updates and re-visiting again

» 9¢ downloads said: { Jun 19, 2010 - 09:06:43 }

I thought it was going to be some boring old post, but I’m glad I visited. I will post a link to this page on my blog. I believe my visitors will find that very useful.

» Rickie Casino Sr. said: { Jun 20, 2010 - 03:06:45 }

I’m actually quite experienced with this, and I 100% agree with you.

» youtube Marketing said: { Jun 20, 2010 - 04:06:22 }

Great Blog! Very informative, I appreciate all the information that you just shared with me very much and I also bookmarked this on dig too. Take care and I’ll be back to read more in the future.

» finance a new car said: { Jun 20, 2010 - 11:06:13 }

Couldn’t be written any better. Reading this post reminds me of my old room mate! He always kept talking about this. I will forward this article to him. Pretty sure he will have a good read. Thanks for sharing!

» Virgina L'Casino said: { Jun 20, 2010 - 03:06:57 }

This is some really great information. I’m overwhelmed by the quality of your site

» Rory De Casino said: { Jun 20, 2010 - 04:06:04 }

Always looking for something new to purchase. Looks like this might be it.

» Farmville said: { Jun 20, 2010 - 04:06:48 }

Hmmm…very beneficial to discover out, there were without having a doubt many items that I had not notion of before.

» Rich Gamble said: { Jun 21, 2010 - 12:06:15 }

I’ve never learned so much from any other blog before. Really enjoyed reading this today.

» Walter Gambling II said: { Jun 22, 2010 - 12:06:44 }

Fabulous post. I’ve bookmarked this page to check back later.

» News2All said: { Jun 23, 2010 - 03:06:09 }

dispenses utilize a good webpage decent Gives many thanks for the effort to help myself

» Edu University said: { Jun 23, 2010 - 09:06:49 }

hello!, thanks for the info, this post was really nice.

» Eboni Friesz said: { Jun 24, 2010 - 03:06:57 }

Hello there, this web site delivered for a google listing on nursing scrubs, it was more or less exactly what I envisaged but after reading your page I am glad it did. Keep up the great work

» Air Plane Tickets said: { Jun 24, 2010 - 04:06:18 }

Wonderful insight:-)

» montessori book said: { Jun 24, 2010 - 11:06:35 }

Excellent writing about Blog health, it is actually useful for me. keep writing and happy blogging.

{ Apr 10, 2010 - 08:04:27 } fix your credit
{ Jun 2, 2010 - 03:06:43 } Yahoo News
{ Jun 3, 2010 - 07:06:20 } wkcttcwr
{ Jun 20, 2010 - 12:06:32 } Read More Here
{ Jun 21, 2010 - 01:06:53 } uk casinos
{ Jun 21, 2010 - 10:06:07 } Free Movie Online