Course: Income Tax Planning
Lesson 10: Recognition of Expenses, Losses, and Deductions
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.
- Schedule C – Profit or Loss from Business
- Schedule D – Capital Gains and Losses
Correct Answer: 1 only
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!