Question
I need to know if the items in the following question are FOR or FROM AGI. Please advise. Thanks! (1)Lauren is a sole proprietor.She owns,
I need to know if the items in the following question are FOR or FROM AGI. Please advise. Thanks!
(1)Lauren is a sole proprietor.She owns, leases, and manages apartment buildings.During the current year, Lauren incurred the following costs.Which of these costs are deductible?If so, are they for AGI or from AGI deductions?
(a)Attorney's fees of $350 for title searches on new property Lauren acquired.
Must be capitalize and adding back to the property's basis
(b)Legal fees of $600 to collect unpaid rent.
Is reported as an expense on Schedule E
(c)CPA fees of $450 to prepare Lauren's 2015 federal income tax return, $350 of whichinvolved preparation of her Schedule C.
With $450 is deductible from 2% of AGI; $350 is reported as expense on schedule C
(d)Legal fees Lauren paid for an attorney to prepare her will.
Not deductible
(e)Legal fees Lauren paid for an unsuccessful challenge a county rezoning ordinancethat adversely affected her business.
Is reported as an expense on Schedule E
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