COD income and legal fee deduction

Jul 06, 2011 1 Replies

Legal fees "to produce or collect taxable [non-business] income" are normally deductible on Schedule A subject to 2% AGI limitation.



If the legal fees are related to cancelation of credit card debt, and it turns out that all the COD income is excludable, would the legal fees then no longer be deductible?



I think so, just looking for confirmation.


I would agree, unless found deductible under a different theory (e.g. determination of tax).

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