Question

Can I deduct fees I paid to lower my real estate taxes? and where do I deduct that if I can?

Forum|Forum|7 years ago
June 6, 2019
2 replies
0 views

I pay any agency every to fight the town to reduce our real estate taxes. They charge me a fee. Can I deduct this fee and if so where on my form can I do that?

TurboTax Premier Windows

D

DianeW777

This could be considered legal fees necessary to produce taxable income. In your case you are getting the real estate taxes lowered, which in turn lowers your deduction and increases taxable income.

Legal fees are not a direct deduction like the real estate taxes. They can be used as a miscellaneous deduction on your itemized deductions. This fall into the section which is limited to the amount that exceeds 2% of your adjusted gross income (AGI). Any excess can be added to the other itemized deductions on your tax return.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

W

wint

I want to be sure the rental percentage of the home may be deducted on Schedule E: Supplemental Income and Loss, line 10, Legal and other professional fees.

Thank you for your replie(s).

T

TomD8

Employee

@DianeW777 @gofgo47 Under the new tax law, legal fees related to producing or collecting taxable income or getting tax advice are no longer deductible.

See page 4 of this IRS reference, "Expenses You Can't Deduct": https://www.irs.gov/pub/irs-pdf/p529.pdf

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

W

wint

Thank you.

No Miscellaneous deductions on Schedule A, but

can I deduct the allocated percentage of rental property tax reduction fees and last year's tax prep software on Schedule E. on line 10, Legal & other professional fees?