Robert C. and Carol S. Jacobsen - Page 8

                                        - 7 -                                         
               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                       
                    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                     

Page:  Previous  1  2  3  4  5  6  7  8  9  10  11  12  13  Next

Last modified: May 25, 2011