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5. Attorney’s Fees Deduction
At trial, petitioner claimed an itemized deduction on
Schedule A for attorney’s fees in the amount of $2,058.50.
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. Swain v. Commissioner, T.C. Memo.
1996-22, affd. without published opinion 96 F.3d 1439 (4th Cir.
1996); sec. 1.262-1(b)(7), Income Tax Regs.
The legal fees which petitioner paid to her attorney were
paid in order to secure petitioner’s divorce and property
settlement. Petitioner expressly waived all spousal support
(i.e., alimony). However, a portion of petitioner’s attorney’s
fees was paid in order to secure the production of income;
namely, the distribution from Mr. Seidel’s CWSC 401(k) plan
includable in her income as alternate payee. Therefore, under
section 212 and under the Cohan rule, we may estimate the amount
of the Schedule A itemized deductible expense. Thus, we hold
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