tax deduction for fees paid to experts/actuary

[nowwhat]

I was reading the IRS web site and it would appear fees paid to an actuary for marriage settlement may be deductable.  Anyone have experience with this?  I was going to just toss his bill after paying it but maybe I should hold on to it?   

nowwhat

[bullshit]

when in doubt,......deduct.

worst case...audit, have to pay the taxes on it.

[Lee Borden]

Your question is actually funkier than it sounds. Clearly, these costs are deductible only to the extent they exceed 2% of your Adjusted Gross Income. For most of us, that stops the inquiry, because the costs are seldom that high.

However, if the expenses are large enough in relation to your AGI, group all the expenses that fall into these two categories:

• they relate to the giving of tax advice for you.
• they relate to helping you receive more taxable income.

So, for example:

• you can deduct attorney fees that help you get more alimony but not attorney fees simply to help you get divorced or to get a higher property settlement.
• you can deduct actuarial fees that help you obtain more alimony but not actuarial fees that help you obtain a greater portion of your Ex's retirement plan.
• you can deduct almost all CPA fees on the grounds they help you with tax advice.

,

Is that murky enough?

To find out more, take a look at IRS Pub 529 (Miscellaneous Deductions), at http://www.irs.gov/publications/p529/

[nowwhat]

Thanks Lee the IRS publication was what I was reading that had me wondering.  Since 2 actuaries were used the costs may go to 2% just not sure if will be beyond it.  What a bizarre ruling.

nowwhat