Can I Write This Off?Can I write off business bank account fees?
TL;DR
Yes, business bank account fees are generally deductible as a business expense.
Detailed Answer
Where to Put It on the Tax Form
Schedule C (Form 1040), Part II, Line 27a for sole proprietors; Form 1120, Line 26 for corporations.
Real World Example
A freelance graphic designer maintains a separate business bank account and incurs $15 monthly maintenance fees. Over the year, these fees total $180, which the designer can deduct as a business expense on their Schedule C.
Calculation Required
A calculation is required for this deduction.
If the account is used for both personal and business purposes, calculate the percentage of business use by dividing the number of business transactions by the total number of transactions. Multiply this percentage by the total fees to determine the deductible amount.
Audit Risk & Documentation Tips
To minimize audit risk, maintain clear records of all bank statements and ensure the account is primarily used for business. Keep documentation of how you determined the percentage of business use if the account is mixed-use.
IRS Reference
IRS Publication 535, Business Expenses
Relevant Industries
Popular Related Pages
Disclaimer: This is for informational purposes only and should not be construed as tax or legal advice. Always consult your tax advisor.
Page created on July 7, 2025