Question
Dolores and Teddy are separated and are obtaining a divorce. They incur legal fees in 2022 for their respective attorneys in these amounts: Dolores Teddy
Dolores and Teddy are separated and are obtaining a divorce. They incur legal fees in 2022 for their respective attorneys in these amounts:
| Dolores | Teddy | |
| General costs of the divorce | $14,000 | $16,000 |
| Determination of custody and dependency exemptions | 5,000 | 0 |
| Property (personal) settlement tax consequences | 2,000 | 11,000 |
| Property (business) settlement tax consequences | 7,000 | 8,000 |
| TOTAL | 28,000 | 35,000 |
Although not required, Dolores pays Teddys lawyer as a gesture of her positive feelings for Teddy. What is the amount of deduction Dolores can take for these legal fees?
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Cost Accounting A Managerial Emphasis
Authors: Charles T Horngren
6th Edition
0131795082, 978-0131795082
