No.  You will not be able to deduct these, overdra...
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New Member

Can I deduct overdraft fees that occured in a business account? If so, how?

 
8 Replies
New Member

Can I deduct overdraft fees that occured in a business account? If so, how?

No.  You will not be able to deduct these, overdraft fees are not business expense.

New Member

Can I deduct overdraft fees that occured in a business account? If so, how?

Thank you. To clarify, even though it was an expense of the business you cannot deduct it? Can you elaborate why this would be treated differently from other bank fees that are deductible?
New Member

Can I deduct overdraft fees that occured in a business account? If so, how?

The way to look at it and all expenses is; was this fee or expense necessary for the business and its growth.  The reason it is different is that it was a cost that was not mandatory to run the business.  Meaning, you could have run the business without having that fee, while the other fees are a cost for doing business.  One is mandatory, one is 'optional'.
New Member

Can I deduct overdraft fees that occured in a business account? If so, how?

Excellent explanation. Thank you very much.
New Member

Can I deduct overdraft fees that occured in a business account? If so, how?

You are very welcome.
Level 15

Can I deduct overdraft fees that occured in a business account? If so, how?

May I ask what the fees are from?  Did your own checks bounce or did someone else's check bounce that you deposited?
New Member

Can I deduct overdraft fees that occured in a business account? If so, how?

Our own check bounced. There was a miss-timing of a check deposit and payment that resulted in insufficient funds for a check that was made to another organization.
New Member

Can I deduct overdraft fees that occured in a business account? If so, how?

Unfortunately the answer that bank fees / charges on a business account are non-deductible is incorrect. Bank charges / fees on a business bank account are deductible. Read IRS Publication 334 under "other expenses you can deduct". Pud 535 does not address bank fees.
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