Can I deduct these Attorney Fees?

[Bele Chere]

What is the name of your state (only U.S. law)? NC
A five year battle with my brother over commercial rental property left to us by our Mother will soon be coming to an end, if he actually follows the Courts Judgement on the matter this time. It has cost me several thousand dollars but I won. I have never claimed any of my attorney fees on my Schedule E because I was told it was not deductible as it was to help me get the property I was due.
However, I would like to know if I can now deduct the legal fees for the following:

Deeds being written.

Costs of filing Motions to Compel Compliance against my brother for ignoring the Court's previous judgement to sign the deeds).

Can I also deduct the cost of an accountant to file my taxes for the income I receive from the property?

 

[davew128]

What is the name of your state (only U.S. law)? NC
A five year battle with my brother over commercial rental property left to us by our Mother will soon be coming to an end, if he actually follows the Courts Judgement on the matter this time. It has cost me several thousand dollars but I won. I have never claimed any of my attorney fees on my Schedule E because I was told it was not deductible as it was to help me get the property I was due.
However, I would like to know if I can now deduct the legal fees for the following:

Deeds being written.

Costs of filing Motions to Compel Compliance against my brother for ignoring the Court's previous judgement to sign the deeds).

The advice was correct as given and it applies to these costs as well.

 

[Bele Chere]

Thank you for your reply. What, if any legal fees ARE tax deductable?
Another question...I have not deducted any mortgage interest either, but my brother may have....The property, as well as the mortgage, is still in our deceased mother's name. It will be paid off and separate Deeds issued next month. Can I deduct any interest I paid in 2008?

 

[davew128]

Thank you for your reply. What, if any legal fees ARE tax deductable?

When the meet the criteria for deductible expenses, ordinary, necessary and reasonable. Legal fees paid take on the characteristics of the nature of the legal action which is why fees paid to defend or secure title to property are capitalized and not deductible.

Another question...I have not deducted any mortgage interest either, but my brother may have....The property, as well as the mortgage, is still in our deceased mother's name. It will be paid off and separate Deeds issued next month. Can I deduct any interest I paid in 2008?

I suggest you have a local tax professional research the issue.