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Tax deductions: Fines, bribes and loan points

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Tax deductions: fines, bribes and loan points. See attached file for full problem description.

11. Anothony owns a trucking business. During the current year he incurred the following:

Gasoline and Oil $90,000
Maintenance $15,000
Fines for Speeding and Illegal Parking $8,000
Bribes to Government Inspection Officials $11,000

What is the total amount of deductible expenses?

a. $105,000
b. $113,000
c. $116,000
d. $124,000

12. Points incurred in connection with which of the following transactions involving a taxpayer's principal residence are not deductible when paid?

a. purchase
b. refinance
c. construction
d. improvement

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The solution explains exactly what points are and when they are deductible. The deductibility of fines, bribes and illegal expenses are commented on.

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11. Fines and bribes are illegal expenses and not deductible on any tax return any ...

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