I use TurboTax and it states that legal fees for Estate tax planning -- fees related to tax planning is a Misc. Deduction.
I have legal fees relating to estate planning -- setting up trusts, etc. Is that considered as "tax planning" (it has GST element in it)? Is there anything in Estate Planning that is not deductible?
Also, is Accountant's fee for filing Form 709 a Misc. Deduction? If yes, does not go under tax preparation fee Or something else?
TIA
Estate planning per se is not normally tax planning. If you have a large estate that requires a marital trust to assist with planning your taxes, then a portion of the planning attributable to the tax portion may be deductible. But in general not other kinds of estate planning.
None of it is deductible because tax law no longer allows for this type of miscellaneous itemized deduction on Schedule A of the 1040.
Alan,
It may be deductible. The OP is asking about the NY IT-201, not the federal 1040.
Ira Smilovitz, EA Leonia, NJ
New York decoupled from the federal changes to itemized deductions in the TCJA.
"In general, your New York itemized deductions are computed using the federal rules as they existed prior to the changes made to the Internal Revenue Code (IRC) by the Tax Cuts and Jobs Act (Public Law 115-97)."
How about accountant's fee for Gift Tax Return? Is that a Misc. Ded.? Or are the professional fees deductible only if it relates to income tax or production of income?
TIA
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