Let's say that i own a business... and i received a fine from the city of ANYCITY, USA... the fine paid to the city was assessed by the sanitation department... for failing to separate the business's trash into recyclable and nonrecyclabe bins as required by a city ordinance...
How do I go about accounting for this on my income tax returns? I am using turbo tax... what should I do?
Should I include it as an expense? or not?
Please help...
2007-12-01 14:36:45 · 4 answers · asked by ivana314 2 in Business & Finance ➔ Taxes ➔ United States
Do I even record it for the business income? or just ignore it?
2007-12-01 15:08:26 · update #1
How do I account for it???? Do I just ignore it?
2007-12-01 19:20:42 · update #2
Penalties for not folowing code enforcement is not considered a legitamite business expense.
You may want to have a CPA look over work prior to filing your taxes.
2007-12-01 16:36:16 · answer #1 · answered by Anonymous · 1⤊ 0⤋
A fine is an after-tax expense. You would enter a Debit to an account called Fines Paid and a Credit to Cash to journalize this expense. Fines CANNOT be deducted on your Schedule C (Sole Proprietorship) as a Miscellaneous Expense.
2007-12-01 19:50:20 · answer #2 · answered by robertcfranklin 2 · 1⤊ 0⤋
No, sorry, a fine isn't a deductible expense.
2007-12-01 14:41:29 · answer #3 · answered by Judy 7 · 3⤊ 0⤋
Fines are not deductible....sorry.
2007-12-01 15:23:19 · answer #4 · answered by Wayne Z 7 · 2⤊ 0⤋