The deductibility of tax preparation fees depends on your specific situation:
General rule:
- Accounting fees are only deductible if incurred "for the purpose of earning income from a business or property"
For individuals without business income:
- Generally, you cannot deduct the cost of preparing your personal tax return
For individuals with business income:
- You can deduct fees related to your business tax preparation
- How to report in Wealthsimple Tax:
- Add the Business, Professional, and Commission Income section to your profile
- In the Income & Expenses subsection, enter the cost field in the field labelled Legal, accounting, and other professional fees (8860)
Important notes:
- Only the portion of fees related to your business is deductible
- Keep receipts and documentation of all tax preparation fees
- If you have both personal and business tax preparation, ask for a breakdown of the fees
Exceptions:
- Fees for preparing appeals or objections to tax assessments may be deductible in some cases
- Investment management fees may be deductible if related to non-registered investments
Remember:
- The rules for deducting tax preparation fees can be complex
- When in doubt, consult with a tax professional
If you have questions about the deductibility of your specific tax preparation fees, consider consulting with a tax expert. For assistance entering business expenses in Wealthsimple Tax, please contact Wealthsimple support.
Comments
0 comments
Please sign in to leave a comment.