Legal fees to Retitle rental property

Forum|Forum|4 years ago
April 1, 2022
2 replies
12 views

I have a client who purchased Rental property in her name. She paid Legal Fees to Transfer the Title of the Rental Property to her Revocable Trust. Are those legal fees deductible on Schedule E? Or more of a personal expense?

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Best answer by IRonMaN

Sounds like a personal expense to me.

IRonMaNAnswer

Level 15

Sounds like a personal expense to me.

Slava Ukraini!

J

jgcpaAuthor

Level 5

Thank you for your reply. Just to clarify, the purchase of rental property remained rental property. Does that change your answer?

IRonMaN

Level 15

Nope. Changing the name on the title had no effect on rental operations - it was for personal reasons not business reasons.

Slava Ukraini!

BobKamman

Level 15

Why didn't she put it in the trust in the first place? She hadn't been conned into thinking she needed a trust yet? Estate planning, whether needed or not, is a personal expense. Just because it's income property doesn't mean the transfer is income-related.

Next year she'll be back transferring it to an LLC. Because, well, everyone else does it, right? (Except in California.)

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