Thank you very much for your well informed input. The legal fees are entered on 1040 Schedule1, line 24i. I made no adjustments on the California form 540. On form 540 TurboTax entered it as an itemized deduction, but it's limited to 2% of AGI. Not very helpful considering the legal fee was 30%. The out of state attorney claims that the entire legal fee should be entered as an adjustment. This could be a very expensive mistake if he is wrong. Is he wrong? Thanks again.
