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Can we deduct expenses for legal fees related to estate planning that involved trusts, powers of attorney, etc.

Can we deduct the legal fees for revising our trusts, medical powers of attorney, living wills, etc.

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LinaJ2018
Intuit Alumni

Can we deduct expenses for legal fees related to estate planning that involved trusts, powers of attorney, etc.

No, you cannot, unfortunately. 

With the new tax reform TCJA,  it eliminates miscellaneous itemized deductions including the legal fees. Prior to the 2017 Act, you could deduct legal fees that were greater than 2% of your adjusted gross income as a miscellaneous expense. However, not anymore after 2017.  There are still some legal fees might qualify for a deduction against your gross income like discrimination or Trade & Business related but they won't apply to you. 

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1 Reply
LinaJ2018
Intuit Alumni

Can we deduct expenses for legal fees related to estate planning that involved trusts, powers of attorney, etc.

No, you cannot, unfortunately. 

With the new tax reform TCJA,  it eliminates miscellaneous itemized deductions including the legal fees. Prior to the 2017 Act, you could deduct legal fees that were greater than 2% of your adjusted gross income as a miscellaneous expense. However, not anymore after 2017.  There are still some legal fees might qualify for a deduction against your gross income like discrimination or Trade & Business related but they won't apply to you. 

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