Hi. I'd paid a law firm a retainer for work on trademark submission and received a check for the unused part of the retainer. How is that categorized? It's not income. And not an expense. I file as an SCorp/Form 1120S.
...How is that categorized? It's not income. And not an expense. I file as an SCorp/Form 1120S.
It is categorized as neither income nor an expense provided you did not deduct the returned amount as an expense in a previous tax year.
hcomm
Returning Member
Sep 11, 2019 9:30:21 AM
I did, as an expense the previous year. So based on that would I now categorize it as an earning as it was previously deducted as an expense? I'm assuming that's correct?