Gigi's legal expenses for the year included $800 for writing her will,$300 for making a change to her partnership agreement,$6,000 to defend a liability claim against the partnership,and $900 to clear the title to her home when a dispute arose with a previous owner.What is her deduction for legal expenses?

Question

Quizplus · Accepted Answer

Only the legal expenses related to Gigi's partnership and her home title dispute are deductible as business expenses. Therefore, her total deduction for these expenses is $300 + $900 = $1,200. The expenses related to her will and personal liability claim are not deductible. So, her deduction for legal expenses is $1,200.

Gigi's Legal Expenses for the Year Included $800 for Writing