Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
chachocon
New Member

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

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

"

1 Best answer

Accepted Solutions
MinhT
Expert Alumni

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

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

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

7 Replies
MinhT
Expert Alumni

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

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

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

chachocon
New Member

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

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

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

If the tenant reimburses you, this is NOT income. It is a reimbursement. You do not report the reimbursement on your tax return.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
chachocon
New Member

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

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
Expert Alumni

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

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.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
damoureux
New Member

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

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
Expert Alumni

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

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.

Dynamic AdsDynamic Ads
Privacy Settings
v