Cryptocurrency Q&A
Can professional fees be deducted?
Can professional fees be deducted?
AltcoinAdventurer
Thu Oct 17 2024
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6 answers
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I'm wondering if professional fees, such as those paid to lawyers, accountants, or other specialized service providers, can be deducted from my taxable income or business expenses.
6 answers
RobertJohnson
Sat Oct 19 2024
The Code does not explicitly list legal and professional fees as deductible expenses, leaving taxpayers to determine their eligibility based on other criteria.
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CryptoGuru
Sat Oct 19 2024
To deduct legal and professional fees, a taxpayer must demonstrate that these expenses are "ordinary and necessary" in the course of their business or income-producing activities.
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Chiara
Fri Oct 18 2024
Section 162 of the Code outlines the deductibility of business expenses, including those that are ordinary and necessary for carrying on a trade or business.
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SamsungSpark
Fri Oct 18 2024
Similarly, Section 212 addresses expenses related to the production of income, which can include legal and professional fees incurred in the pursuit of such income.
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AzurePulseStar
Fri Oct 18 2024
Taxpayers should carefully evaluate their legal and professional expenses to ensure they meet the requirements for deductibility under either Section 162 or Section 212.
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