Starting Your Business

What are Business Expenses

Tax Preparation Fee

You can deduct as a trade or business expense the cost of preparing that part of your tax return relating to your business as a sole proprietor. The remaining cost is deductible on Schedule A (Form 1040) if you itemize your deductions.

You can also take a business deduction for the amount you pay or incur in resolving asserted tax deficiencies for your business as a sole proprietor.These fees include the cost of tax preparation software programs and tax publications. They also include any fee you paid for electronic filing of your return.


Important References:

Publication 535                    Business Expenses
Schedule C (Form 1040)      Profit or Loss from Business
Instructions for Schedule C (Form 1040)