New Orleans Divorce Lawyer Discusses Tax Deductions

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With tax season here, attorneys at Beaumont Divorce want to make sure that everyone knows their legal rights to claiming deductions after divorce on a tax return. New Orleans divorce lawyers advise to work with a CPA or other tax professional to get as much back on tax returns as possible.

New Orleans Divorce Attorney

Divorce Attorney - Will Beaumont

Divorce can be an expensive process, and the New Orleans divorce lawyers at Beaumont Divorce recommend individuals facing this process know what the impact of their divorce will be on their taxes. According to Will Beaumont, lead lawyer at the firm, some divorce expenses, such as spousal support, may be a tax deductible item for those who need to separate from their spouses. This may be informative to know as we move into the Spring tax season.

Because of the potential to deduct some divorce costs, attorney Beaumont cautions his clients to work with a qualified CPA throughout the divorce process. “Just like we know family law,” said Mr. Beaumont, “CPAs are qualified to give tax advice. Before you file your taxes after a divorce, make sure you talk to a CPA to see what may be deductible. Every case is different, but it can be that a portion of the costs, such as spousal support, that you incur are a deductible expense.”

However, deducting attorney’s fees can be complex. According to IRS tax code, the fees paid to an attorney for the purpose of getting a divorce are not deductible. However, the fees paid to an attorney for tax advice relating to divorce or the fees necessary to receive alimony may be, according to UncleFed’s Tax Board.

The IRS allows taxpayers to deduct fees paid to attorneys for tax advice. Comments Mr. Beaumont, “While our New Orleans divorce attorneys do not provide this advice, it is possible that they may work with a tax lawyer as part of their marital dissolution. The fees associated with this tax portion of the divorce may be deductible.”

Some divorcing couples end up in a battle for spousal support (i.e. alimony). Those who pay their attorneys to help with this battle may be able to claim those fees as a deductible item on their tax returns. This is because alimony is reported as gross income, and thus is related to the tax return.

Mr. Beaumont states, “Clients need to understand that it is only the portion of the lawyer fees paid for these two purposes that may be deducted. At our firm, we are sometimes able to help our clients by offering detailed documentation outlining what portion of the fees they pay go toward these expenses.”

In light of these facts, someone considering a New Orleans divorce may want to discuss their upcoming tax return with a CPA or tax lawyer before they begin the process. This will allow them to maintain the necessary documents to successfully prove that the appropriate fees are tax deductible.

Will Beaumont practices family law in New Orleans. The above is simply general information, and it is neither tax nor legal advice.

About Beaumont Divorce

Beaumont Divorce is a New Orleans divorce law firm that helps individuals successfully file for divorce. Attorney William Beaumont leads the team of compassionate legal professionals who focus their practice entirely on family law and divorce. For a free initial consultation to learn your rights as you head toward divorce, visit us at 3801 Canal St #207, New Orleans, LA 70119 or at http://www.beaumontdivorce.com or call (504) 483-8008.

Resources:
http://www.unclefed.com/IRS-Forms/2001/HTML/p50407.html
http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=2f521aab53f2a5ac67d7822e0d842a70&rgn=div8&view=text&node=26:3.0.1.1.1.0.5.145&idno=26

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