Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 07-02-2018, 02:14 PM
Junior Member
 
Join Date: Jul 2018
Posts: 1
Deduction of attorney fee

I have a question regarding a pending lawsuit for one of my clients. Here is a brief overview of the situation:

A realtor is demanding payment for unpaid commissions from my client. This lawsuit was filed in 2017 and names my clients LLC, the S Corporation that owns the LLC and my client as an individual. My client as well as two other individuals were stock holders in the S Corporation. The other individuals are not named in the suit. Both the LLC and S Corporations were closed prior (2016) to the filing of this suit in 2017.

This has obviously incurred attorney fees for my client. These fees were paid to the attorney in 2017 and still being paid in 2018. My question is, how or where can I deduct these attorney expenses on the personal income tax return for my client? Also, do the other stock holders of the S Corporation have rights to these attorney fees as a deduction.

I thank you for your time in reviewing this case. I appreciate any and all assistance that you can provide.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 07-03-2018, 01:07 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,113
My question is, how or where can I deduct these attorney expenses on the personal income tax return for my client? =========>I do not think so in your case however, it depends; in a variety of both business and non-business situations, Legal fees related to the collecting of income or collecting, acquiring, or calculating tax may be deductible on your federal income taxes I mean , you may take a deduction when you need an attorney's help to make money you?ll have to pay tax on; for example, For example, you can deduct attorney fees paid for collecting money owed to you by a customer



Also, do the other stock holders of the S Corporation have rights to these attorney fees as a deduction.====>>as mentioned above.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
how to vet a tax attorney ?? quantum1 Capital Gains 1 11-30-2016 06:07 PM
Misc Income as Attorney alacdl Filing Requirements 1 03-25-2016 08:35 PM
Attorney Fees Deduction inbb2b Rental Real-Estate 0 11-22-2014 05:25 PM
1099-c and attorney fees buckone Income 1 04-04-2011 08:14 PM
power of attorney mcelmury1212 Miscellaneous 1 03-20-2011 08:35 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning