Velma and Bud divorced.Velma's attorney fee of $5,000 is allocated as follows:

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:
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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 portion of the attorney fee that is directly related to tax advice regarding the divorce ($2,000 in this case). The remaining portion of the attorney fee is considered a personal expense and cannot be deducted as an itemized deduction.

Velma and Bud Divorced