How to get tax break on penalty that was paid toward a business that is now closed?

Forum|Forum|7 years ago
June 3, 2019
4 replies
18 views

I had business in 2013 that was closed in 2014. But I forgot to pay the fee that was $800. So in 2015 I paid $920 with penalty. Under what category should I put that amount to get tax break? Note: During the life of the business the profit made was $0

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Best answer by

There's no tax deduction for fees or penalties of any kind. Additionally, 2015 expenses would need to be on your 2015 return.

Let me know more details and we can confirm this applies.

Anonymous

Answer

There's no tax deduction for fees or penalties of any kind. Additionally, 2015 expenses would need to be on your 2015 return.

Let me know more details and we can confirm this applies.

jgehlotAuthor

Level 2

I am sorry the penalty was paid in 2016. But doesnt that fee+penalty that was paid toward a business that made $0 profit, so from businessman's prospective it was $800 loss. ($800 was fee and $120 was penalty). Thanks for your help.