LEGAL FEES

LEGAL FEES

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i have a client who sold his business at the second attempt following an abortive sale in the same tax year......legal fees were incurred on the abortive sale......what, if any, is the tax treatment of these fees?.......
Tony Wilshire

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By User deleted
22nd Mar 2007 09:37

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You treat the abortive fees in exactly the same way as the new fees incurred if they relate to the same business.

Jason
Holden Associates
The Small Business Blog

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By AnonymousUser
22nd Mar 2007 13:40

I disagree

Fees relating to an abortive proposed sale are not allowable because there is no income or gain to set them against. This is an example of a "tax nothing".

If the fees for the subsequent successful disposal are reduced because some of the ground work is already in place then there is an argument for apportinning some of the abortive fees. But anything specific to the deal that fell through cannot be allowed.

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