When a dental practice divorce valuation is used to divide marital property, the valuation might not apply for other purposes. That’s the conclusion reached by a federal bankruptcy court recently when deciding whether to approve a Chapter 13 restructuring plan in which the dentist would pay 22 cents on a dollar to creditors, including his ex-wife. When […]
Legal fees that are paid to generate or preserve taxable alimony may be tax-deductible if the requirements are met. Generally speaking, legal fees are tax-deductible only to the extent that they exceed 2% of a taxpayer’s adjusted gross income, and then only if related to tax advice, or incurred to generate alimony, spousal support (but not child support) or collect arrears. Chapter 7 of Frumkes & Vertz on Divorce Taxation discusses the deductibility of legal fees in family law.
Frumkes & Vertz on Divorce Taxation §7.5 Can a spouse (or exe) deduct legal fees paid to the other spouse’s lawyer? Only fees paid to a taxpayer’s own attorney will qualify for deduction (if all legal requirements are met). Legal fees paid to the attorney of the taxpayer’s spouse may be deducted only if structured as […]
Tax Alerts in Your In-box
Get tax alerts delivered when you need them. We won't flood your in-box with junk, and we do not share your address with others.