Velma and Bud divorced.Velma's attorney fee of $5,000 is allocated as follows:
General representation in obtaining the divorce
$1,500
Services in obtaining custody of the child
900
Services in settlement of martial property
600
Determining the tax consequences of:
Dependency deduction for child
700
Tax Consequences of property settlement
1,300

Of the $5,000 Velma pays to her attorney,the amount she may deduct as an itemized deduction is:
A)$0.
B)$700.
C)$2,000.
D)$5,000.
E)None of the above.

Question

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

Quizplus · Accepted Answer

Velma may deduct the attorney's fees related to obtaining custody of the child and settlement of marital property, which total $1,500 ($900 + $600). The fees related to general representation in obtaining the divorce and determining the tax consequences are not deductible.

Velma and Bud Divorced