Tax Preparation Fees

Today TaxMama hears from Peter in Florida who wants to know, “I am self employed, a sole proprietor running a one person business. Are my income tax preparation costs personal expenses? Or may I record them as business expenses?”

Hi Peter,

That’s an excellent question.

What I do is split the fee.

The amount that you would have paid for a personal return, use on Schedule A as a personal deduction. The amount related to the business part of the return, goes on your Schedule C, as a business expense.

If you’re concerned about IRS disagreeing with your allocation, simply ask your tax professional to itemize the bill exactly for that purpose!

And remember, you can find answers to all kinds of questions about mixed-use expenses and all kinds of other tax issues, free. Where? Where else? At

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