You can deduct certain fees related to your business if they relate to your own taxes.
For purposes of this deduction, “professional” includes an attorney, accountant or other person who provides advice about tax matters. If you have a C corporation or S corporation, do not deduct any fees related to its preparation of its income tax return.
the fees are for services relating to your business.
You can deduct fees you pay to a professional if the fees are for services relating to your business. For example, you can deduct fees paid to an accountant or attorney who has expertise in your industry (such as real estate).
You cannot deduct the same fee from personal taxes. Therefore, even if a professional prepares both types of tax returns for you, he or she cannot claim those expenses on each return as part of their standard hourly rate.
“professional” who provides advice about tax matters.
If you pay your accountant or other professional for services relating to your business, you can deduct the fees.
- If your accountant helps prepare and file your federal income tax return on time and within budget by providing information about how to take advantage of certain deductions and credits (such as the home office deduction), then this would be a service relating to your business. You can deduct these expenses as a medical expense (see above).
If you have a C corporation or S corporation…
If you have a C corporation or S corporation, do not deduct any fees related to the preparation of its income tax return. However, if you are an individual and a C corporation or S corporation prepares your income tax return for you, then the time spent by the professional in preparing it is deductible as an ordinary and necessary business expense under Sec. 162(a)(1).
In addition to these general rules that apply when you pay professionals for services relating to your business activities (such as advertising), there are also special rules for certain types of professionals who prepare tax returns for others:
You can deduct certain fees related to your business
You can deduct certain fees related to your business if they relate to your own taxes. These include:
- Professional tax preparation services you pay for yourself, or someone else who is not an employee of the corporation (who may be an independent contractor)
- Accounting and bookkeeping services, including the cost of software that records and manages data related to business activities. However, if you use software provided by a third party vendor and it has been licensed on a per-use basis rather than by purchase, then any license fees associated with using that software do not qualify under this exception because they’re for something other than preparing your tax return.
As you can see, it’s important to keep track of all the expenses that come up when you’re running a business. You should also be aware of what expenses are deductible and which ones aren’t—and this is where things get tricky!
But we hope we’ve given you some insight into how paying an accountant or tax preparer might impact your bottom line. This information will help make sure that you don’t miss out on any deductions while still getting everything done right as well as budget-friendly.