Question

I sold a business in 2019 and filed final returns in 2020. I paid some legal/accounting fees for the business in 2021. How to deduct these fees as a business expense?

Expenses paid after business was terminated:
1. Attorney fees that were billed late.
2. CPA tax preparation fee for 2020.

You were allowed to deduct those fees on the final tax return filed for 2020. You will need to go back and amend that return to claim the deductions.

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