Where to enter escrow account expenses?

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Subject Author Date Where to enter escrow account expenses? kevin 09-26-2009  Re: Where to enter escrow account expenses? Han 09-26-2009  Re: Where to enter escrow account expenses? D. Stussy 09-28-2009  Re: Where to enter escrow account expenses? Dick Adams 09-28-2009
Posted by kevin on September 26, 2009, 10:51 am Please log in for more thread options I have money in an excrow account that is being used to pay legal expenses. The money is invested in stocks and bonds. The escrow agreement requires me to declare the income less the expenses on my tax return. It is easy enough to enter the income, but where would I enter the expenses? (hopefully not under anything that is subject to 2% of AGI...) -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Han on September 26, 2009, 11:37 am Please log in for more thread options > I have money in an excrow account that is being used to pay legal > expenses. The money is invested in stocks and bonds. > > The escrow agreement requires me to declare the income less the > expenses on my tax return. > > It is easy enough to enter the income, but where would I enter the > expenses? (hopefully not under anything that is subject to 2% of > AGI...) > If it says indeed to enter "income less expenses" than if the income is $99 and the expenses total $97 you have to enter $2 as "income less expenses", wherever that needs to be entered. -- Best regards Han email address is invalid Posted by D. Stussy on September 28, 2009, 7:07 am Please log in for more thread options > I have money in an excrow account that is being used to pay legal expenses. > The money is invested in stocks and bonds. > > The escrow agreement requires me to declare the income less the expenses on > my tax return. > > It is easy enough to enter the income, but where would I enter the expenses? > (hopefully not under anything that is subject to 2% of AGI...) Depends on the nature of the legal expense. It might not be deductible at all. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Dick Adams on September 28, 2009, 7:31 am Please log in for more thread options > I have money in an escrow account that is being used to pay legal > expenses. The money is invested in stocks and bonds. > > The escrow agreement requires me to declare the income less the > expenses on my tax return. > > It is easy enough to enter the income, but where would I enter > the expenses? (hopefully not under anything that is subject to > 2% of AGI...) As always the answer is "It depends". If you asking about the stocks and bonds expenses, they are investment expenses. If you are asking about the legal expenses, their deductibility depends upon the nature of the litigation. Explain the nature of the litigation and someone should be able to provide you with a reasonably accurate answer. Dick -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted What becomes of losses in an escrow account? December 14, 2008, 7:53 pm Health Savings Account with high medical expenses November 12, 2009, 1:59 am How do I enter shorted stock transactions? February 7, 2009, 4:49 pm 0.25% Escrow Waiver Fee deductible? June 5, 2009, 5:30 am How to report rental property's escrow interest? February 18, 2008, 6:14 pm ending capital account does not match beginning capital account April 6, 2009, 11:49 am Transfer of 457 Account September 14, 2008, 12:05 pm Brokerage account October 14, 2008, 12:13 pm 401K/IRA *VS* a retail account November 10, 2006, 2:02 am Health Savings Account February 25, 2007, 5:00 am