Line 17 on Schedule C of the tax form relates to “Legal and Professional Services,” which refers to the cost of services you paid for during the tax year from attorneys, accountants, and other professionals who provide services to your business.
Legal and professional expenses that you may be able to deduct on Line 17 include:
- Accounting and bookkeeping fees: This includes fees you paid to accountants, bookkeepers, and tax professionals for services related to your business.
- Legal fees: This includes fees you paid to attorneys for legal services related to your business, such as drafting contracts, defending against lawsuits, or filing trademarks.
- Consulting fees: This includes fees you paid to consultants or other professionals who provided services to your business, such as marketing or IT consulting.
- Other professional fees: This includes fees you paid to other professionals who provided services to your business, such as engineers or architects.
It’s important to note that there are certain requirements and limitations associated with deducting legal and professional expenses. For example, the expenses must be ordinary and necessary for your business, and you must keep accurate records of the expenses, including receipts, invoices, and other documentation.
If you have any questions about how to report legal and professional expenses on your tax return, it’s a good idea to consult with a tax professional or accountant.