My wife and her siblings had inherrited several shares (very small minority interest <5%) of a privately held company. We utilized the services of external attorneys to negotiate a sale price of the shares back to the majority shareholders. Can the cost of the attorney fees be deducted against any capital gains?
Yes, these would be selling expenses directly related to the sale of that stock.
When you take the cost of the stock (Fair Market Value at the date of death) add the legal fees to the cost basis to determine the adjusted basis of the stock in computing the capital gains.
Note: Inherited property is always Long term gain, regardless of how long how you held it.
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