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
Fines for Speeding and Illegal Parking $8,000
Bribes to Government Inspection Officials $11,000
What is the total amount of deductible expenses?
12. Points incurred in connection with which of the following transactions involving a taxpayer's principal residence are not deductible when paid?
11. Fines and bribes are illegal expenses and not deductible on any tax return any ...
The solution explains exactly what points are and when they are deductible. The deductibility of fines, bribes and illegal expenses are commented on.