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I was looking to start up my own real estate company at
that time. In fact I’m still looking to do that--and
real estate investments, REITS and such. We were going
to buy and sell business and start a holding company.
I started two other additional companies in that
regard.
We were concerned about doing maybe business in
California and New Jersey, so we talked about taxes and
consequences thereof. We talked about Social Security
and retirement; talked to him about hiring my wife as a
consultant, and fees and salary and things like that.
We also talked to him about having him work on cases
that we thought we could sue her prior employer. So we
gave him stipends and he deducted every time we called
him or what have you.
Business startup expenses are deductible only as permitted under
section 195. Investment expenses and advice concerning taxes are
deductible under section 212, but only to the extent that the
aggregate of miscellaneous itemized deductions exceeds 2 percent
of adjusted gross income. Sec. 67(a). Legal fees relating to a
suit against Mrs. Jacobsen’s former employer might or might not
be deductible depending on the nature of the lawsuit. In any
event, the identified services included few, if any, services
that would be deductible on Schedule C. The record does not
include any basis for allocation. No deductions for legal
expenses may be allowed.
Distributions From Retirement Plans
Section 72(t) provides in pertinent part as follows:
(t) 10-Percent Additional Tax on Early
Distributions from Qualified Retirement Plans.--
(1) Imposition of additional tax.--If any
taxpayer receives any amount from a qualified
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Last modified: May 25, 2011