This is clearly an instance where you can report the expense in either category. Contract labor is when you use sub-contractors who are issued forms 1099-MISC. Legal and professional fees are fees paid to lawyers and other professional help. You can use either category for the engineering fees. The IRS is very flexible on the categorization of expenses.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
