What is the definition of a Variable Rate Loan? Variable rate loans are loans that have an interest rate that will fluctuate over time in line with prevailing interest rates. They generally have lower starting interest rates than fixed rate loans, but the interest rate and payment amounts can change over time. Sometimes they are also known as floating rate loans.
1 Contingent attorney fees are not deductible, but non-contingent attorney fees may be deductible. 2  Before deducting these fees, talk to a tax specialist to determine if the fees are deductible based on the details of your case.
The good news is that recent legislation now allows an above-the-line deduction for attorney fees and court costs paid in connection with unlawful termination, discrimination and certain other lawsuits. As a result, we let our client know that she can in fact deduct our fees on line 36 of her tax return.