Discussion:Legal expense of Will- deductible?

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Discussion Forum Index --> Tax Questions --> Legal expense of Will- deductible?


TaxTalker (talk|edits) said:

7 January 2007
Can a Schedule C sole proprietor claim the cost of preparing his will as a business legal expense? Taxpayer states/claims that the reason for preparing the will was to designate his business assets (self-created works of art & related equipment) to a museum after his death. Can any percentage of the legal expense be claimed on his Schedule C (ie. 50% business expense, 50% personal)?

Solomon (talk|edits) said:

7 January 2007
I doubt this meets "ordinary and necessary" of Sec. 162(a).

DZCPA (talk|edits) said:

7 January 2007
Estate planning is deductible. Have lawyer break down invoice to what portion was for WILL PREPARATIION and what portion was for ESTATE PLANNING.

Actionbsns (talk|edits) said:

7 January 2007
I had a similar situation with a client who was divorcing. He wanted to deduct the entire amount of his legal expenses for the divorce. After reading a bit, I found that he was able to deduct legal expenses that were necessary to protect his business on the Schedule C. So I called a lawyer to see what an average cost for a non-contested divorce involving alimony and child support might be in our area. I then deducted that from the legal fees and considered the balance to be the cost of protecting the business from a hostile spouse and her lawyer. I think what DZ is suggesting would be along these lines as well.

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