Thursday, February 21, 2008

Can I claim lawyer fees on taxes? -

Im in a custody/divorce battle and I live in CA I ve spent upwards of 10,000 in the past 6 months on my lawyer fees. Can I claim this money on my taxes? I really need a tax break.

Only the amounts allocable to income tax counsel, and that s subject to a 2% of AGI floor.

Only the portion that is attributable to tax advice, tax return preparation, or the generation of taxable income, if any. Those amounts MUST be itemized separately on the attorney s bills. Portions attributable to the custody fight are not deductible. Any deductible amounts are claimed as miscellaneous itemized deductions on Schedule A if you itemize, and only the portion that exceeds 2% of your AGI is deductible.

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