Are banking fees deductible?

[Yaz47]

Hi - I have a new small business that I started this year and so this will be my first time doing my business taxes. My question is simple, but I have been unable to find definitive feedback. The bank that I use (business account) charges a monthly service fee if a minimum balance is not maintained. I was charged that fee 9 out of the 12 months in 2024. Are those fees deductible on my taxes? (The company is structured as an LLC)

[LindaS5247]

Yes, fees associated with bank accounts are generally considered to be business expenses. Bank fees are tax deductible when they are directly related to the operation of your business are incurred for business purposes are considered ordinary and necessary expenses.

Your banking fees can be entered as "Other Miscellaneous Expenses", which can be found under "Other Common Business Expenses".
 

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