Can I deduct the turbo tax program and audit defense subscription off my schedule C?

[toecheese]

Normally if you use an accountant, you can deduct their charge for preparing your schedule C off next year's schedule C.  But how do I do that with my purchase of the TurboTax program?  Can I write that off my schedule C?

Likewise, can I deduct my purchase of Audit Defense last year off this year's Schedule C?

[rjs]

If the accountant gives you a statement showing a separate charge just for Schedule C you can deduct that as a business expense. But with TurboTax and Audit Defense you pay one combined price for both the personal and business portions of your tax return. There is no breakdown of how much is for the business, so you have no basis for claiming a business expense deduction.

[Hal_Al]

I'm of the opinion that you can deduct the "up charge" on Schedule C. If TurboTax Deluxe was adequate to handle your personal taxes, but you needed to upgrade to TT Self Employment because of your business, you may deduct the rice difference on Schedule C.

If the primary reason for purchasing Audit Defense was the business return, you can deduct that cost too.  If there is anything complex about your personal taxes, you my want to only deduct a portion of the Audit defense cost. 

[toecheese]

Thanks.  My schedule Cs are the only reason I buy Audit Defense--they are the most likely reason I'd get audited, since my Schedule A is so simple.

[sews202]

What would be the correct amount if using both programs to deduct on schedule C?

[AmyC]

The cost of your tax preparation versus the cost of yours plus the business. The difference between the 2 would be the cost of doing business and is a deduction. The audit defense would be- the percentage of it you purchased based on the business.

For example: Your return -no business $100, your return with a business $170. Then $70 is the deduction for the business tax return.

@sews202

[72JLtax]

What would be the correct percentage for audit defense for return without a schedule C?

[DMarkM1]

If you don't have a business (Schedule C) the cost for tax preparation is not a deduction.  You need the Schedule C as part of the equation to determine the business deduction for tax preparation.  As @DawnC explains, if your tax prep cost without the business is $100 and with the business is $170, then the business deduction would be $70.