Velma and Bud divorced.Velma's attorney fee of $5,000 is allocated as follows: $$\begin{array} { l r }
\text { General representation in obtaining the divorce } & \$ 1,500 \
\text { Services in obtaining custody of the child } & 900 \
\text { Services in settlement of martial property } & 600 \
\text { Determining the tax consequences of: } \
\quad \text { Dependency deduction for child } & 700 \
\text { Tax Consequences of property settlement } & 1,300
\end{array}$$ Of the $5,000 Velma pays to her attorney in 2019, the amount she may deduct as an itemized deduction is:
A)$0.
B)$700.
C)$2,000.
D)$5,000.
E)None of these.

Question

Velma and Bud divorced.Velma's attorney fee of $5,000 is allocated as follows: $$\begin{array} { l r } 
\text { General representation in obtaining the divorce } & \$ 1,500 \
\text { Services in obtaining custody of the child } & 900 \
\text { Services in settlement of martial property } & 600 \
\text { Determining the tax consequences of: } \
\quad \text { Dependency deduction for child } & 700 \
\text { Tax Consequences of property settlement } & 1,300
\end{array}$$ Of the $5,000 Velma pays to her attorney in 2019, the amount she may deduct as an itemized deduction is:
A)$0.
B)$700.
C)$2,000.
D)$5,000.
E)None of these.

Quizplus · Accepted Answer

Legal fees related to divorce, custody of children, and settlement of marital property are not deductible. Only legal fees related to determining the tax consequences of alimony or the tax consequences of property settlement are deductible. However, the Tax Cuts and Jobs Act of 2017 suspended the deduction for miscellaneous itemized deductions subject to the 2% floor under which these expenses would fall, for tax years 2018 through 2025. Therefore, none of the $5,000 is deductible.

Velma and Bud Divorced Of the $5,000 Velma Pays to Her Attorney in 2019