A sole proprietor paid legal fees in connection with the acquisition of a building that he uses in his business.The sole proprietor can deduct the legal fees for AGI.

Name: A sole proprietor paid legal fees in connection with the acquisition of a building that he uses in his business.The sole proprietor can deduct the legal fees for AGI.
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Question

Quizplus · Accepted Answer

Legal fees related to the acquisition of a capital asset, like a building, must be capitalized and added to the asset's basis, not deducted for AGI.

A Sole Proprietor Paid Legal Fees in Connection with the Acquisition