The Cincinnati Enquirer

Are you ready to talk taxes?

OK, so it's a subject most of us like to avoid. But if you have an income tax question, the Enquirer can help you get an answer today.

TAX CHAT

Are you ready to talk taxes? OK, so it's a subject most of us like to avoid. But if you have an income tax question, the Enquirer can help you get an answer today. We're again hosting a series of online chats with Tom Cooney and Crystal Faulkner, partners in the accounting firm of Cooney, Faulkner & Stevens. Today's chat is 12 noon at Cincinnati.Com. Just click on the tax chat logo to join in. The next chat will be March 13.

Representatives of Cincinnati-based Cooney, Faulkner & Stevens, certified public accountants and business consultants, will be answering questions about taxes toda in a chat starting at noon on Cincinnati.Com. Just click on the tax chat logo to join in.

The next chat will be March 13.

You can also e-mail questions to tax@enquirer.com.

Here are answers to some questions from an earlier tax chat, along with some questions sent in by e-mail.

Question: I had 810 shares of stock that split 3-for-1, giving me 2,430 new shares. I have now sold 880 of the new shares of stock - so how do I calculate the amount of my capital gain? Would I take the cost of the 810 shares and divide by three to establish my initial cost per share?

Answer: To determine your cost basis in the shares sold, you divide the initial purchase price of the 810 shares by the number of shares you own (now 2,430) and then multiply by the number of shares sold (880).

This has the same effect as what you suggest in dividing the cost by three. Subtract this amount from your net proceeds to calculate the gain or loss on the sale.

Q: We had our will prepared last year (2003). Can we deduct the legal fees we paid to an attorney? If yes, is it going to be part of itemized deductions or something else?

A: Legal fees paid to lawyers for tax planning advice are deductible as miscellaneous itemized deductions on Schedule A, subject to the 2 percent of adjusted gross income limitation. However, the cost of will preparation is not deductible.

Q: My wife and I have been filing jointly for the past 3 years. Can we file separately this year?

A: The IRS allows you to make a determination each year as to whether you file married filing jointly or separately.

Q: To some brokerage firms, we pay account maintenance fee per year. Can we deduct that?

A: Account maintenance fees are deductible on Schedule A as miscellaneous itemized deductions subject to the 2 percent of adjusted gross income limitation.