Are yearly fees paid to a municipality in California as a result of a development agreement with the municipality tax deductible.
2007-10-22 10:33:07 · 2 answers · asked by egold56 2 in Business & Finance ➔ Taxes ➔ United States
Maybe. It would depend on what, exactly, the fees are for. If this is something punitive, and by "agreement" you mean that the developer is actually paying a 'fine' then it is probably not decductible. For instance, the company that spills toxins in the river, and then enters into an 'agreement' to clean it up. Not deductible.
However, if it is simply a cost of doing business, then it is deductible. If it is a fee the developer pays because the town would need additional services, for instance. The casino that pays a 'fee' so that the county can increase the staff at the gambling hotline - deductible. This is an operating expense.
2007-10-24 16:49:01 · answer #1 · answered by Katie Short, Atheati Princess 6 · 0⤊ 0⤋
Take this one to the FTB. Their chat helpline is sooooooo helpful.
2007-10-22 20:06:58 · answer #2 · answered by K(old man) 2 · 0⤊ 1⤋