Discussion:Legal fees & Inherited Basis

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Discussion Forum Index --> Consumer Questions --> Legal fees & Inherited Basis

Hybe (talk|edits) said:

23 June 2006
I own a partial interest in an inherited home(Mom's) My brother is disputing my portion which was gifted to me over 10years($10,000/yr) We are involved in a legal dispute and I am incurring legal fees. Where do I deduct those fees? I was told by a friend to not deduct(2% floor) but to add it to my basis when settled. Is this correct?

Thanks

Warren (talk|edits) said:

23 June 2006
Unfortunately, that is correct.

Kevinh5 (talk|edits) said:

3 April 2007
Reg. 1.212-1(k) says these are non-deductible. They must add to the basis, then.

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