A Sole Proprietor Paid Legal Fees in Connection with the Acquisition

question 101

True/False

A sole proprietor paid legal fees in connection with the acquisition of a building that he uses in his business.The sole proprietor can deduct the legal fees for AGI.

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Definitions:

Interest Payments

Payments made to lenders or bondholders as compensation for the use of borrowed money or invested capital.

Trust Company

A financial institution that acts as a trustee, managing estates, setting up trusts, and handling assets for beneficiaries.

Indenture

A formal agreement, or contract, between a bond issuer and the bondholders, specifying the terms of the bond.