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Returning Member
posted Jun 1, 2019 10:35:25 AM

Can we deduct ~6k in legal fees for a revocable trust that my wife and I established in 2017? If so, where do we do it? Thanks!

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1 Best answer
Level 7
Jun 1, 2019 10:35:35 AM

Legal fees are generally not deductible on a personal 1040 return.

There are three significant exceptions

  • To produce or collect taxable income.

  • To determine, contest, pay, or claim a refund of any tax.

  • To receive tax advice and tax planning

Based on the above, your legal fees would unfortunately not be deductible.

 


2 Replies
New Member
Jun 1, 2019 10:35:27 AM

my estate planner told me the expense was 30% taxable

Level 7
Jun 1, 2019 10:35:35 AM

Legal fees are generally not deductible on a personal 1040 return.

There are three significant exceptions

  • To produce or collect taxable income.

  • To determine, contest, pay, or claim a refund of any tax.

  • To receive tax advice and tax planning

Based on the above, your legal fees would unfortunately not be deductible.