Sure expenditures incurred throughout dissolution of marriage proceedings could qualify for a discount in taxable revenue. As a basic rule, private bills related to a divorce aren’t deductible. Nevertheless, charges paid for authorized recommendation immediately associated to securing alimony, or spousal assist, are doubtlessly deductible as a miscellaneous itemized deduction, topic to limitations imposed by legislation. For example, if authorized counsel is retained to barter the quantity of alimony to be acquired, the portion of the charges particularly attributable to these negotiations could also be claimed as a deduction.
The provision of such a deduction is influenced by adjustments in tax legislation. Traditionally, miscellaneous itemized deductions exceeding 2% of adjusted gross revenue had been deductible. This offered taxpayers with a method to offset a number of the monetary burden of divorce. Latest tax laws has briefly suspended the deductibility of those miscellaneous itemized deductions, impacting the power to assert this explicit sort of expense. Understanding the present tax code is subsequently paramount when figuring out eligibility.
