Starting Your Business

What are Business Expenses

Accounting/Bookkeeping Expenses

Legal and professional fees, such as fees charged by accountants, that are ordinary and necessary expenses directly related to operating your business are deductible. However, you usually cannot deduct legal fees you pay to acquire business assets. Instead, add them to the basis of the property.

Important References:

Publication 334                        Tax Guide for Small Business
Publication 535                        Business Expenses
Schedule C (Form 1040)          Profit or Loss from Business
Schedule C-EZ (Form 1040)    Net Profit from Business
Instructions for Schedule C (Form 1040)