How can I deduct tax advisor costs from my taxes?
July 29, 2023 | 60,00 EUR | answered by Petra Lehmann
Dear tax consultant,
My name is Theodor Klinger and I am a self-employed entrepreneur in the IT industry. Over the past few years, I have noticed that the costs for my tax consultant are continually increasing. I am now wondering if it is possible to deduct these costs from my taxes in order to reduce my tax burden.
Currently, I pay a fixed monthly amount to my tax consultant for ongoing bookkeeping, tax returns, and general tax advice. As a self-employed individual, I have many tax matters to consider, making the support of my tax consultant essential for me. However, the rising costs are increasingly burdening my company.
I am concerned that the high tax consultant fees are reducing my profits and limiting my ability to invest and grow. Therefore, I am looking for ways to deduct the costs of my tax consultant from my taxes in order to improve my financial situation.
Could you please explain to me what options are available to claim tax deductions for tax consultant costs? Are there specific requirements that I need to meet in order to deduct these costs? What documents do I need and how exactly do I need to report the costs in my tax return?
I look forward to your assistance and thank you in advance for your help.
Sincerely,
Theodor Klinger
Dear Mr. Klinger,
Thank you for your inquiry regarding the deductibility of tax advisor costs. As a self-employed entrepreneur in the IT industry, it is understandable that you are thinking about how to reduce your tax burden, especially considering the rising costs of your tax advisor.
In principle, it is possible to deduct the costs of your tax advisor from your taxes. These costs are considered operating expenses and therefore reduce your profit, which in turn leads to a reduction in your tax burden. Specifically, you can claim the costs for ongoing bookkeeping, tax return preparation, and tax advice as operating expenses.
In order for tax advisor costs to be tax deductible, these costs must of course be in an appropriate proportion to the business circumstances of your company. This means that the amount of the costs for the services of your tax advisor should be reasonable and understandable.
To include tax advisor costs in your tax return, you will need the corresponding invoices from your tax advisor as evidence. These invoices should list the services provided in detail so that you can break down the costs according to the individual services. Make sure that the invoices are properly issued and contain all the necessary information.
In your tax return, you can then list the tax advisor costs under the "Operating expenses" section. Here, you should list the costs for ongoing bookkeeping, tax return preparation, and tax advice separately and provide evidence according to the invoices. Please note that the costs for tax advice may need to be separately stated.
I hope this information is helpful to you and that you can successfully deduct the tax advisor costs from your taxes. If you have any further questions or need assistance, I am happy to help.
Best regards,
Petra Lehmann
