cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Community Contributor *
Solved

Tax Preparation fee

Please answer a question regarding a tax preparation fee.

 

I paid my accountant $279 in February 2019 to do my 2018 taxes.

 

My understanding is that tax preparation fees must be deducted the same year as the tax return for which they apply.

 

In order for the $279 to be deducted on the 2018 tax return, it should show up as an expense on the Quickbooks 2018 Profit Loss Report. However, the $279 expense was incurred in February, 2019.

 

Do I back-date the expense to 12/31/2018 so it shows up on the 2018 Profit Loss Report and can, therefore, be deducted on the 2018 return?

 

Thank you for your help,

 

Steve

Best answer 02-20-2019 09:24 AM

Accepted Solutions
Community Backer **

Re: Tax Preparation fee

Unless your accountant has ESP, there is no way to prepare taxes for the current year in the current year.  One must wait until the year is closed for the final accounting in order to begin income tax preparation.  So tax prep fees are always for a prior period. 

 

If you have a business, you may deduct 2018 tax prep fees paid in 2019 in 2019.  As of the new tax reform of 2018, individuals may no longer deduct income tax prep fees.

2 Comments
Community Backer **

Re: Tax Preparation fee

Unless your accountant has ESP, there is no way to prepare taxes for the current year in the current year.  One must wait until the year is closed for the final accounting in order to begin income tax preparation.  So tax prep fees are always for a prior period. 

 

If you have a business, you may deduct 2018 tax prep fees paid in 2019 in 2019.  As of the new tax reform of 2018, individuals may no longer deduct income tax prep fees.

Community Contributor *

Re: Tax Preparation fee

QBsguru,

Thank you for an excellent answer! You answered my question perfectly. I have a business so I will deduct the $279 in 2019.