fees-paid

[TAXMAN]

Just saw the information where the accountant finally got paid for years of work. This was for basically all schedule C work. Bill was 17K. TP paid this bill without borrowed funds. Would it be safe to pace that amount on Schedule C under professional fees. Gonna make Sch C look sick this year. What would you do?

[Catherine]

Why would you NOT put it on Schedule C for the year paid? Cash-basis taxpayer, claim expense in year paid. If it is legitimately ALL for Sch C work, then it goes as professional fees on Sch C.

Guy is very lucky in his accountant; my engagement letter for businesses states that if three invoices are unpaid I have the right to refuse to perform future work until a payment is made. I'd never let someone's tab grow to $17K. (Maybe if they were sole heir of a rich uncle in poor health, lol.)

[michaelmars]

_{I would put it on sch c as appropreiate, don't forget some of the fee goes on A for the rest of the return}

[Guest Taxed]

Catherine is right. I am just curious if 17k deduction for professional fees is going to cause a net loss on Sch C?

It may make is stick out like a sore thumb. Hope the TP paid by check and had invoices from the accountant that were delinquent until paid.

[jklcpa]

And don't forget the 1099-misc, if needed, depending on the type of entity the accountant is operating as.

[Guest Taxed]

Good point. Did not think about that! My invoices are all less than $600!