deducting tax return preparation...

I know income tax preparation is deductable, but my question is about when it is deductable; when it is billed, or when it is paid.

I was billed last May for my 2007 tax return, but I have not paid it. (on my lawyer's advice, don't ask...) Presumably I can't deduct it off my 2008 return since I didn't pay anything; if I pay it in 2009 can I deduct it off my 2009 return?

========================================= MODERATOR'S COMMENT: Assuming like just about every individual taxpayer you are on the cash method of accounting, the deduction is taken in the year you paid it.

Reply to
Joe
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That depends on your accounting method: Cash-basis accounting: When you PAY it. Accrual accounting: When it is invoiced to you.

Note that not all individuals are cash-basis. However, if the OP wasn't, he wouldn't be asking the question.

Reply to
D. Stussy

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