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?
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'.
June 7, 2019 3:55 PM
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.