Hi All,
If a lawyer provided professional legal advice (say $5000) on opening a corporation, timing, planning, type of corp. considering my situation etc.. and it’s a rental business, is this legal fee considered:
1. Tax deductible expense this year considered as “expense to earn income” and therefore reducing net income this year?
OR:
2. Considered Capital Cost meaning if it’s an investment property for example this expense of $5000 will be added to the original purchase price when selling the property therefore will reduce capital gain when the property is sold in the future?
The expense is legitimate and both options help reduce the tax paid obviously , I’m just not sure which is the preferred option by most accountants(?)
THANKS,
Neil
ps. I’m from Canada