Question

#29)

Velma and Bud divorced. Velma’s attorney fee of $5,000 is allocated as follows:

General representation in obtaining the divorce $1,500

Services in obtaining custody of the child 900

Services in settlement of martial property 600

Determining the tax consequences of:

Dependency deduction for child 700

Tax Consequences of property settlement 1,300

Of the $5,000 Velma pays to her attorney in 2019, the amount she may deduct as an itemized deduction is:

Group of answer choices

a-$0

b-$700

c-$5,000

d-None of the above is correct.

Please show your calculations. Thanks.

Answer 1

Answer: - a. $0

Calculation:-

General representation in obtaining the divorce $1,500 (Not eligible for itemized deduction) $0

Services in obtaining custody of the child 900 (Not eligible for itemized deduction)     $0

Services in settlement of martial property 600 (Not eligible for itemized deduction) $0

Dependency deduction for child 700          $0

Tax Consequences of property settlement 1,300 (Legal fees that relate to tax advice are no longer deductible). $0

Amount she may deduct as an itemized deduction is: $0

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