- 5 - We sustain respondent’s determination that petitioner is not entitled to the IRA contribution deduction. The second issue for decision is whether petitioner is entitled to deduct the payment of certain legal fees to her attorney in connection with petitioner’s divorce. Personal, living, and family expenses generally are not deductible by taxpayers. Sec. 262(a). Attorney’s fees and other costs paid in connection with a divorce generally are personal expenses and therefore nondeductible. Sec. 1.262-1(b)(7), Income Tax Regs. On the other hand, expenses paid for the production or collection of income, or in connection with the determination, collection, or refund of any tax, generally are deductible. Sec. 212(1), (3). This is the case even if the expenses are paid in connection with a divorce. Sec. 1.262-1(b)(7), Income Tax Regs.; United States v. Gilmore, 372 U.S. 39 (1963); Swain v. Commissioner, T.C. Memo. 1996-22, affd. without published opinion 96 F.3d 1439 (4th Cir. 1996). The legal fees which petitioner paid to her attorney were paid in order to secure petitioner’s divorce. They were not paid in order to secure the production of income (i.e., alimony), and petitioner does not allege that they were paid in connection with any tax advice. Thus, the legal fees are personal expenses which are nondeductible under section 262(a).Page: Previous 1 2 3 4 5 6 7 Next
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