What is Line 17 on Schedule C?
Line 17 — Legal and professional services
Line 17 on Schedule C is legal and professional services. It covers fees you pay for professional advice about your business: bookkeeping, the business portion of tax preparation, business legal advice, and contract drafting. Personal legal matters do not belong here, and the personal share of a combined tax-preparation bill must be excluded — ask your preparer to itemize. Keep engagement letters and invoices as your documentation.
Examples
- Monthly bookkeeping fees for the business.
- A lawyer reviewing your client service agreement.
- The business share of your annual tax preparation fee.
Watch out for
- Legal fees to buy an asset are usually added to the asset's cost, not expensed here.
- Paying a contractor to do your actual client work belongs on Line 11, Contract labor.
- Fees for defending a personal matter are not deductible even if you are self-employed.
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General information, not tax advice. Amounts, limits, and percentages change between tax years — check the current IRS Schedule C instructions or ask a tax professional about your situation.
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