I have money in an excrow account that is being used to pay legal expenses. The money is invested in stocks and bonds.
The escrow agreement requires me to declare the income less the expenses on my tax return.
It is easy enough to enter the income, but where would I enter the expenses? (hopefully not under anything that is subject to 2% of AGI...)
"kevin" wrote in news:h9l828$or6$ snipped-for-privacy@news.eternal-september.org:
If it says indeed to enter "income less expenses" than if the income is $99 and the expenses total $97 you have to enter $2 as "income less expenses", wherever that needs to be entered.
Depends on the nature of the legal expense. It might not be deductible at all.
As always the answer is "It depends".
If you asking about the stocks and bonds expenses, they are investment expenses.
If you are asking about the legal expenses, their deductibility depends upon the nature of the litigation. Explain the nature of the litigation and someone should be able to provide you with a reasonably accurate answer.
Dick
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