Deducting Professional Fees involved in Purchasing a

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Hi David
Thanks for all your assistance with my acquisition of XXXXXXXXXXXXX.  As you
know I came to you for advice and you invoiced me accordingly but I recall
one detail where I asked you to put XXXXXXXXXXX on the invoice you said I
should NOT do that because then I would not be able to write it off at tax
time.  My question is does this apply for legal advice as well ?  My Lawyer
created two invoices - one in the name of XXXXXXXXXXXXXXXX only and one in the
name of (XXXMEXXXX) and XXXXXXXXXX - the first one I think is no problem
but the second one I think I should be asking for an invoice with just my
name on it ?  Is this correct ?
I will have a number of small questions like this - are you able to add up
a few of them and when they get to an hour or whatever you can invoice me ?
Best regards,
AXXXXXXXXXX
XXXXXXXXXXXXX
XXXXXXXXXXXXXXXXXXXXXXXX Highway
Victoria, BC VXX XXX
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david ingram replies:
I gave you the bill in your name because NO bill which involves the purchase of or due diligence of a capital asset is deductible against any income from that asset.
Therefore, I gave you an accounting bill because I calculated the tax for existing structures in your life and charged you for that. It will be deductible agains the income from your 
Technically, you had no right at the time to incurr a bill in PerfectWorld because you did not own it yet.
The same thing applies to the purchase of a rental apartment.  The legal cost of the purchase gets added to the purchase price and can be depreciated but not written off in total against current income.
Your legal bill is deductible if it was for work after your purchase and was for information about the operatiosn of the business or for negotiating a new contract with a client or to sue a debtor, etc.  Technically (legally), it is NOT  deductible against PERFECTWORLD's operating income if you paid it to "buy" the company.
To give another example.  If you paid the lawyer $1,000 to incorporate the company, it is not deductible.  It goes on the Balance sheet as an asset under Incorporation expense.
  
I will be glad to send you a bill when appropriate.
Hope this helps
David
David Ingram's US/Canada Services
US / Canada / Mexico tax and working Visa Specialists
US / Canada Real Estate Specialists
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North Vancouver,  BC, CANADA, V7N 3L7
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Disclaimer:  This question has been answered without detailed information or consultation and is to be regarded only as general comment.   Nothing in this message is or should be construed as advice in any particular circumstances. No contract exists between the reader & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
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