Taxpayer got sued over an easement on his personal home. The result ended in a loss for the taxpayer and the court has asked to pay $1.257 million in purposively legal fees over the easement. He’s now being forced to sell his home and a second home he owns to cover the legal fees imposed.
Will these legal fees be deductible as part of the sale of the home? Can all the legal fees be included on the sale of the property in question and carry the losses for the next property that the taxpayer may be forced to sell to cover the legal fees?