During the current year, Lucy, who has a sole proprietorship, pays legal and accounting fees for the following:
Services performed to resolve a business contract $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$ \$ 5,000 $ Services rendered in resolving a federal tax deficiency
relating to her buriness$\quad$$\quad$2,000 Tax return preparation fees:
$\begin{array}{ll}
\text { Allocable to Schedule C (her sole proprietorship) } & 1,800 \
\text { Allocable to Schedule E (a rental property she owns) } & 800 \
\text { Allocable to remainder of Form } 1040 & 900 \
\text { Legal fees incident to her divorce (no taxadvice) } & 2,000
\end{array}$ What amount is deductible for AGI?

Question

During the current year, Lucy, who has a sole proprietorship, pays legal and accounting fees for the following:
 Services performed to resolve a business contract $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$ \$ 5,000 $ Services rendered in resolving a federal tax deficiency
 relating to her buriness$\quad$$\quad$2,000 Tax return preparation fees:
 $\begin{array}{ll}
\text { Allocable to Schedule C (her sole proprietorship) } & 1,800 \
\text { Allocable to Schedule E (a rental property she owns) } & 800 \
\text { Allocable to remainder of Form } 1040 & 900 \
\text { Legal fees incident to her divorce (no taxadvice) } & 2,000
\end{array}$  What amount is deductible for AGI?

Quizplus · Accepted Answer

The Answer of During the current year, Lucy, who has a sole proprietorship, pays legal and accounting fees for the following:
 Services performed to resolve a business contract $\quad $ $\quad $ $\quad $ $\quad $ $\quad $$ \$ 5,000 $ Services rendered in resolving a federal tax deficiency
 relating to her buriness$\quad$$\quad$2,000 Tax return preparation fees:
 $\begin{array}{ll}
\text { Allocable to Schedule C (her sole proprietorship) } & 1,800 \
\text { Allocable to Schedule E (a rental property she owns) } & 800 \
\text { Allocable to remainder of Form } 1040 & 900 \
\text { Legal fees incident to her divorce (no taxadvice) } & 2,000
\end{array}$  What amount is deductible for AGI?

During the Current Year, Lucy, Who Has a Sole Proprietorship \quad

During the Current Year, Lucy, Who Has a Sole Proprietorship $\quad$