Explore BrainMass

Explore BrainMass

    Tax deductions: Fines, bribes and loan points

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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

    © BrainMass Inc. brainmass.com June 3, 2020, 7:42 pm ad1c9bdddf


    Solution Preview

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

    Solution Summary

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