Course:  Income Tax Planning
Lesson 10: Recognition of Expenses, Losses, and Deductions

Student Question:

Hi-

I read that advisory fees are no longer deductible. So, in this question (below), is it deductible because this is treated as a business deduction since Roger is Self-Employed?

Alisha Sheridan, A CFP licensee and fee-only financial planner, has assisted Roger Regate, a self-employed physician, in tax and investment planning during the year. Identify the schedule(s) on which Alisha’s fee may be deductible by Roger on his federal income tax return.

  1. Schedule C – Profit or Loss from Business
  2. Schedule D – Capital Gains and Losses

Correct Answer: 1 only

Thanks

Emily


Instructor Response:

Hey Emily.  Good to hear from you.  You are correct here.  Individual taxpayers that do not own a business may no longer deduct these fees as a result of TCJA.  However, the fees are deductible as an ordinary and necessary business expense of the physician’s business.  
 
Have a great evening!
 
Dan