Can I deduct the fines paid on tenant's behalf?

[chachocon]

The tenant violated the environmental law and the city issued citations. I have to pay for the citations. Can I deduct those expenses? My friend said I can't deduct "

• Fines and penalties paid to the government for violations of law

"

[MinhT · Accepted solution]

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

[chachocon]

So if the tenant reimburse me the fines, should I count the reimbursement as my income?

[MinhT]

If the tenant reimburses you, this is NOT income. It is a reimbursement. You do not report the reimbursement on your tax return.

[chachocon]

Thanks. How's about the utility bills that are of tenant's responsibility? can the reimbursement of the utility bills be counted as income?

[MinhT]

If you previously deducted those utility bills as expenses, then the reimbursement is income. If you did not, then it is a reimbursement, and NOT income.

[damoureux]

Hi

I had a new Tenant move into my condo and despite providing all the documentations and processing fee to the Association's Property management company, they failed to put my tenant's vehicle on the do not tow list while he waited for them to make his permanent parking pass. 

After 2 weeks of moving in, his vehicle was towed from the assigned parking spot owned by my unit. I reached out to the association and their property managers and they refused to pay the tow charges.  I ended up having to pay the charges so my tenant could get to work and not suffer any further inconvenience.

Would I be able to deduct this charge on my taxes as an administrative or property expense? I do not think my tenant or myself violated a law and the fees paid was apart of conducting business for my rental property. Just curious. 

@MinhT @chachocon 

[ErnieS0]

No. You were doing your tenant a favor. As you said, the towing charge was not related to the business of renting your property so it does not qualify as a rental deduction.