Can legal fees in connection with loan modification (1099-C issued) be deducted for investment property?

[eva]

Client had a loan modification of $172K on a rental property.  Received a 1099-C.

Can the legal fees associated with the loan modification be deducted on Sch E?

Thank you, Gurus

[George4Tacks · Accepted solution]

Generally legal fees for the protection or production of income are deductible, so I would say yes. 

[eva]

Thank you for your answer. I was also told to amortize it over the life of the loan