Due to our property manager's negligence we were assessed a large fine in addition to legal fees related to our rental property. We had to pay. Can we deduct these fines?

[californiakk]

Four people are allowed per AOAO House Rules. Our property manager rented our unit on a six-month lease to 5 people. We were charged $50 per day since the renter moved in. Our property manager told us repeatedly not to pay the fines. Then we received a letter from the AOAO attorney stating that we owed over $18,000 with the addition of legal fees. After receiving legal counsel my husband and I paid off the fines and legal fees to the AOAO so that the fines and legal feels would stop mounting. I don't have much confidence that our property manager will reimburse us without taking her to court. Can we deduct these fines and legal fees related to our rental property off of our 2021 income taxes? Thank you.

[ColeenD3 · Accepted solution]

No, you cannot deduct fines and penalties for violations of law, even if they were the responsibility of your tenants or property manager.