Re Can I deduct legal fees I paid for by klutzfu60

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									                            Re: Can I deduct legal fees I paid for H1B visa?

Re: Can I deduct legal fees I paid for H1B visa?

Source: http://newsgroups.derkeiler.com/Archive/Misc/misc.taxes/2008−03/msg00232.html



     • From: "Paul Thomas, CPA" <paulthomascpapc@xxxxxxxxxxxxx>
     • Date: Tue, 18 Mar 2008 17:01:13 −0400


<sean.kobayashi@xxxxxxxxx> wrote

       On Mar 18, 11:35 am, "Paul Thomas, CPA"
       <paulthomascp...@xxxxxxxxxxxxx> wrote:

               <sean.kobaya...@xxxxxxxxx> wrote


                       In 2007 my employer sponsored me for an H1B visa. We
                       made an agreement
                       that I would pay all of the lawyer fees (document prep and
                       filing
                       fees) for filing the H1B visa with the immigration office. Am
                       I able
                       to deduct the legal fees I paid? Where do I enter the
                       deduction? On
                       Schedule A Employee Business Expenses Line 7 'Other' or
                       Schedule A
                       Miscellaneous Expenses Line 17 'Certain attorney and
                       accounting fees'?


               It's not deductible.

               −−
               Paul A. Thomas, CPA
               Athens, Georgia



       According to IRS publication 529, these were "legal fess related to
       producing or collecting taxable income or getting tax advice". So
       doesn't the legal fees that I paid for document prep apply to this?




Re: Can I deduct legal fees I paid for H1B visa?                                        1
                             Re: Can I deduct legal fees I paid for H1B visa?
        From Publication 529

Legal Expenses
You can usually deduct legal expenses that you incur in attempting to
produce or collect taxable income or that you pay in connection with the
determination, collection, or refund of any tax.
You can also deduct legal expenses that are:
Related to either doing or keeping your job, such as those you paid to
defend yourself against criminal charges arising out of your trade or
business,
For tax advice related to a divorce if the bill specifies how much is for
tax advice and it is determined in a reasonable way, or
To collect taxable alimony.
You can deduct expenses of resolving tax issues relating to profit or loss
from business (Schedule C or C−EZ), rentals or royalties (Schedule E), or
farm income and expenses (Schedule F) on the appropriate schedule. You
deduct expenses of resolving nonbusiness tax issues on Schedule A (Form 1040
or Form 1040NR). See Tax Preparation Fees, earlier.

−−−−−−−−−−−−−−−−−−−−−−−−−



The legal fees are for the visa. They do not relate directly to the income
from any resulting job.

Look at it this way. That job could be done by a US citizen without
obtaining an H1B visa, right. So those expenses are yours personally, not
required by that job or that employer. And that's the difference. It's not
job related.

The job doesn't require you to have it. The US Government requires you to
have it.

They are non−deductible personal expenses.




−−
Paul A. Thomas, CPA
Athens, Georgia




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                          Re: Can I deduct legal fees I paid for H1B visa?

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