Have a Tax Question? Ask a Tax Expert
Hello! I am a CPA here to assist you with your tax questions. My goal is to provide you with excellent service today.
How are you today?
I hate to be the bearer of bad news, and please don't shoot the messenger, but bail funds are not tax deductible as business expense
So no, this bail fee is not tax deductible.
Is there anything else that I can assist you with today? If not, please rate my response as "excellent" so that I may receive credit for assisting you today
Can you provide as IRS code section or court case that supports this?
I do not have a link to a code or section or case, but I do have articles that support this
This is in refernce to an individual, not in reference to an operating business. There are many deductions that not deductible to the individual, but are as legitimate business expenses. I really was looking something more specific to situation.
If the expense is "ordinary" and "necessary" then it is deductible
Bail fees are still not tax deductible.
losses attributed to criminal activity are not tax deductible under any circumstances.
Unless you are a victim
One other issue: If the charges are dismissed, then it is not a criminal activity.
One other Issue: If the charges are dropped, then it is not a criminal activity and therefore necessary and ordinary and not in connection with a criminal activity. Correct?
Still yet, bail fees are not deductible.
I'm truly sorry if you expected otherwise.
Please site a court case or IRS code section that says bail fees are not deductible under any circumstance. The article you cited is not nearly sufficient to support your position.
I am sorry, but I do not have a court case or IRS code section that outlines this particular issue.
Let me explain my position to you. I am a tax accountant, not a CPA, but 35 years experience in this business. Therefore, I know that IRS code, regs, and court cases are everything. You hold yourself out as an expert and charge customers for expert advive, but you cite some article that has no meaning in the context of the question posed and has nothing that legally supports your position. I thought I would pay the $ 38.00 and evaluate. What if I paid
What if I paid $ 1,500.00, would I have received a reliable answer that would hold up?
I will not pay $ 38.00, $ 5.00, $1.00 or one penny for what provided as evidence to support yours position. This is just a google search for a complex situation, I already knew that bail cost could not be deducted as a tax expense for an individual taxpayer. I will quote you here, "
Still yet, bail fees are not deductible". OK, if this is true, state your authority for this, show me something from IRS code, regs, or a court case that can be used in the event of an audit. This is too important an issue to rely upon coming from a totally unrealated example. Please advise.
Since I did not identify myself as a professional, therefore you did not realize who you are dealing with,I will give you a day or two to provide me with a meaningful answer that includes a legitimate legal and quotable resourse before formally evaluating your performance.
Now, this is what I was looking for!!!
I will give the rookie a high rating because she escalated it to someone who could provide support for the position. Thank you so much!!! Maybe I won't receive a preparer penalty in the event of audit. At least I have some letter rulings and court cases to rely on. I don't know how all of this works, but if I had not pushed the issue and had so much experience, I would have received and paid for bad advise.
I just gave you a $ 100.00 bonus, please let me know if this has been credited to you.I prepare over 1500 indivudual returns annually and approximately 100 combined 1120,1120S,1065, and 1041 returns. I have two local CPA firms that I exchange information and tips with. The issue I have is that they never know the answer to any issues I bring to them and they actually refer clients to me. I am SO happy to find another resource. Thanks again, Joan Toups - [email protected]