Are Legal Fees Associated With Negotiating the Granting of an Easement On Income Producing Farm Property To a Utility Company Tax Deductible?

[whenry5]

Are Legal Fees Associated With Negotiating the Granting of an Easement On Income Producing Farm Property To a Utility Company Tax Deductible?

[AmyC]

It depends.

• If it was a necessary expense related to business of farming, then it is a business deduction.
• If the easement is considered a capital improvement,  add the fees to the basis.
• Circumstances can vary widely, this may be a question for the lawyer based on your specific circumstances.