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Article: Some tax prep ruled deductible. (tax return preparation fees of small business owners) (Brief Article)
- Article from:
- Accounting Today
- Article date:
- May 11, 1992
CopyrightCOPYRIGHT 1992 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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WASHINGTON -- In a recent ruling, the Internal Revenue Service decreed that small business owners can deduct part of their tax return preparation fees as a business expense in determining their adjusted gross income.
Benefiting from the decision will be sole proprietors, farmers and other individual taxpayers with royalty or rental income, because these expenses are not subject to the two percent floor for miscellaneous deductions.
The ruling also allows them to deduct expenses related to the examination of the business or income production portion of their tax return.
To illustrate the mechanics, the IRS used the case ...