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Tax Preparation fee

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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

QuickBooks Desktop

Q

QBsguruAnswer

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.

Q

QBsguruAnswer

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.