I sold a business in 2019 and filed final returns in 2020. I paid some legal/accounting fees for the business in 2021. How to deduct these fees as a business expense?

Expenses paid after business was terminated:
1. Attorney fees that were billed late.
2. CPA tax preparation fee for 2020.

131

Expert Alumni

Apr 7, 2022 12:52:47 PM

You were allowed to deduct those fees on the final tax return filed for 2020. You will need to go back and amend that return to claim the deductions.