Final answer:
Legal expenses deductible for AGI include those incurred in connection with a trade or business (a) and those related to rental or royalty property for income production (b). Personal legal expenses and those related to tax-exempt income are not deductible.
Step-by-step explanation:
The student has asked which legal expenses are deductible for Adjusted Gross Income (AGI). Under current tax law, legal expenses that are incurred in connection with a trade or business, as well as those incurred in connection with rental or royalty property held for the production of income, are generally deductible.
These expenses are considered ordinary and necessary expenses for operating a business or managing property. In contrast, legal fees incurred for personal reasons or for the production of tax-exempt income are not deductible. Legal fees incurred for tax advice relative to the preparation of an individual's income tax return are deductible, but they are itemized deductions, not adjustments to AGI.
Therefore, the correct answer to the question is d. Only a. and b. qualify as legal expenses deductible for AGI.