Let’s say that a Large Privately Owned Company (making more than 500 million a year) was to hire a Consulting Firm. This firm would help with Marketing as well as with New Product Ideas.
Would the Large Company be able to deduct the Consulting Firm’s Fees? If so, how much could be deducted (percentage wise). Would there be any Special Stipulations or guild lines that the Large Company or the Consulting Firm would have to adhere to, as far as the I.R.S. was concerned?
Thank you in advance for your answers.
Mike h.
2007-12-01 18:05:35 · 3 answers · asked by mike h 2 in Business & Finance ➔ Taxes ➔ United States
The only stipulation is that the firm in question is actually doing something that is beneficial to your company. Other than that, it's 100% deductible as advertising or Research and Development. It's up to you.
2007-12-03 02:24:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Yes, 100% of the consultant's fee could be deducted. It's a business expense.
2007-12-02 02:20:28 · answer #2 · answered by Judy 7 · 2⤊ 0⤋
its just marketing expense- you will report it when it is incurred for book purposes and treat is as an ordinary disbursement, reducing net income as a business expense. If an indvidual comes in for consulting, not a corporation, make sure you 1099 them for year-end
2007-12-02 02:10:34 · answer #3 · answered by helpmebookkeep 1 · 0⤊ 0⤋