Capital gain and lawyer fees

Originally posted by : ProgTick
	If a person inherited a property, but he had to fight in court for years to claim his right on property, would lawyer fees count as expenditure and can it be claimed as a deduction? he also had to make multiple trips to India from USA to settle the deal, can that count as expenditure too?

such fees or expenses did not added any utility or value to the capacity of property, hence its revenue expenditure, not to be added to capital asset value.

Accordind to me it will be form part of cost of acquisition and will be capitalised as the expenditure was necessary to get the title of the property.

But it is not a proper sale; its a only transfer of title within the family (inherited property). I am assuming that if there are legal fees incurred in a proper sale of property, then its allowed and not otherwise.

I may be wrong.

it willbe added as cost of purchase.

Originally posted by : TRILOCHAN
	Accordind to me it will be form part of cost of acquisition and will be capitalised as the expenditure was necessary to get the title of the property.

what about airfare, can that be deducted too?

exp needs to b added t cost of acquiition.....

wat abt travelling expense ?tht
will b capitalised too ??

Originally posted by : ProgTick
	If a person inherited a property, but he had to fight in court for years to claim his right on property, would lawyer fees count as expenditure and can it be claimed as a deduction? he also had to make multiple trips to India from USA to settle the deal, can that count as expenditure too?

get legal help and file case of compensation on the parties against whom you had to fight to get the title of property including airfare and incidental expenses.

Accordind to me it will be form part of cost of acquisition and will be capitalised as the expenditure was necessary to get the title of the property.

Agreed with because without obtaining title no gain will arise and than there will no question of  value of the property.

when the property was got by the query holder in "inheritence" then what should be the cost of acquisition? coz COA would be the the value on which the previous owner has got the property.

The query holder did not mentioned what type of court matters he dealt and why ........if its in between the family members or with somebody else who has control over the property then he may file civil suit against the person/(s) who were in illegal possession to the property,  to recover his expenses, as the COA would be the price which was in hand of previous owner.

if the cost was paid as "registration fees" for this property then where the "inheritence" appears?