Let’s see – if I post 2 per week of the 300+ business deductions I have, it’s going to take me 3 years to get through these! That’s one of the great things about being a tax strategist. Tax law is constantly changing, everybody’s circumstances are different and there are a dozen versions of every one of these deductions.
And that all means that I’ll never run out of things to talk about! The deduction I want to go into detail today is: Accounting and auditing expenses. Read on for more of the details of how to make sure you’re getting the full deduction.
Accounting and auditing expenses, such as:
Auditing of your books and accounts Costs of bookkeeping Costs of tax strategy preparation Coss of preparing and filing tax returns Costs of investigation of any tax returns Costs of defense against any IRS or state agency audits or challenges
A mistake I sometimes see with beginning business owners (especially ones that do their own tax return or have someone in the strip mall type tax prep services) is that they put the cost of accounting and/or tax preparation in Schedule A for their Form 1040 as a miscellaneous deduction. If asked, they’ll say they deducted it. But the problem is that the miscellaneous deduction is limited by the amount of your AGI (adjusted gross income). It’s important that this expense instead shows up on the business return.