Although tax season is over, tax questions arise year round. Momondealz is married to an experienced accountant and will be answering questions sent to him at [email protected] with the subject line “Ask an Accountant”.
I am a blogger who has recently set my site up to be a “business”. This required seeking advice from lawyers and an accountant. Can I deduct the fees I was charged for this advice?
Yes. This would fall under legal and professional fees. As long as your meetings were business related, they are considered ordinary and neccessary business expenses. However, there are certain legal expenses that are considered “start up costs”. The cost of getting started before operations have begun are considered capital costs and are recovered over time. Since many bloggers start their sites before “becoming a business”, this usually doesn’t apply.
*Please keep in mind this post is for informational purposes only and answers given are very general. Do not rely on this column for definite tax answers as many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.