Starting Your Business/Keeping Tax Records

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 on Schedule C or C-EZ. However, you usually cannot deduct legal fees you pay to acquire business assets. Add them to the basis of the property.

Important References

Publication 334                        Tax Guide for Small Business
Form 1040 Schedule C          Profit or Loss from Business
Form 1040 Schedule C-EZ    Profit or Loss from Business