Previously tax prep fees were non-deductible except for businesses or disputes with CRA.
new line on Schedule 4 and a client’s insistence that my fees are deductible is making me question my response. I did search CRA but did NOT see anything to change my mind.
Am I missing something?
Tax prep fees are deductible for investment income, not just business income.
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But only for non-registered accounts. Yes? In some cases we are dealing with the complete financial situation to determine the best strategy to give them a sufficient income. Should those fees be deductible?
I’m not sure about that, fees for advise and management of investments are deductible but I don’t think tax prep fees.
The line on S4 I believe would be for fees that would fall under paragraph 7 of this IT bulletin.
Right or wrong I think in terms of the complexity of the return, if is sufficiently complex enough for that particular tax client to be able to prepare it on their own, if No, I give them the deduction.
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Thank you all for your insights.
Agreed!
You can’t deduct “tax preparation” fees, but you can deduct “advice” fees. Make sure your invoices say both and then deduct them.
Even “simple returns” if you spend any time at talking to them about options for earning or taxation then that is advice, imo.
+25 years I’ve never had that deduction challenged.