An appraiser's fee belongs on Line 17, legal and professional services.
Why line 17
An appraisal you commission for an ordinary business reason, such as supporting an insurance claim, settling a dispute or valuing inventory, is a professional service on line 17. The treatment flips when the appraisal is part of acquiring property: then it is a cost of getting that asset and is added to its basis instead of deducted. An appraisal for a personal purpose, including one supporting a charitable gift of personal property, is not a Schedule C expense.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so an appraiser's fee lands on Line 17 without you sorting it.
Start for freeWhat an appraiser's fee is confused with
- Form 4562, form 4562, carried to schedule c line 13
- An appraisal obtained as part of buying an asset is capitalized into that asset's basis and recovered through depreciation, not deducted on line 17.
- not deductible, not deductible
- An appraisal for a personal matter, such as valuing a donation of household goods, is not a business expense at all.
Examples that belong on line 17
- A $500 equipment appraisal supporting a fire insurance claim
- $750 for a business valuation prepared for a partner dispute
- A $400 appraisal of specialized tools for a lender's collateral review
- $350 to value damaged inventory after a flood
What does not belong here
- An appraisal done to buy a building, which goes into the building's basis
- A home appraisal for refinancing your residence
- An appraisal supporting a personal charitable donation
What to keep
Keep the appraiser's engagement letter, the invoice, and the report, which states the purpose the appraisal was prepared for.
Other expenses on line 17
| Expense | Line |
|---|---|
| a registered agent's annual fee | Schedule C, Line 17 |
| a tax prep fee covering the 1040 and Schedule C | Schedule C, Line 17 |
| bookkeeper and accountant fees | Schedule C, Line 17 |
| business consultant fees | Schedule C, Line 17 |
| fractional CFO fees | Schedule C, Line 17 |
| legal fees for drafting a client contract | Schedule C, Line 17 |
| legal fees to sue a customer | Schedule C, Line 17 |
| tax preparation fees | Schedule C, Line 17 |
Related lookups
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so an appraiser's fee lands on Line 17 without you sorting it.
Start for free