Tax
Dec. 19, 2012
Looking for year-end tax deductions? Pay your lawyer
Distinguish purely personal from investment expenses. Legal fees paid to help the client's business reputation could be business or investment expenses. Business legal fees are the best, as they are fully deductible.
Robert W. Wood
Managing Partner
Wood LLP
333 Sacramento St
San Francisco , California 94111-3601
Phone: (415) 834-0113
Fax: (415) 789-4540
Email: wood@WoodLLP.com
Univ of Chicago Law School
Wood is a tax lawyer at Wood LLP, and often advises lawyers and litigants about tax issues.
No one likes paying legal fees, but even pricey fees can look a lot less unreasonable when you can deduct them: $10,000 in legal fees costs only $6,000 if the client pays a combined 40 percent tax rate. And reports suggest that a good number of California taxpayers will be paying a combined federal and California rate exceeding 50 percent in 2013. With those rates, deductions matter.
When it comes time to collect their fees, lawyers be...
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