My account called me.... So we (landlord) received fines of $255 for our tenants failing to shovel the sidewalk. I promptly wrote a check for the fines, and then sent my tenant a bill for the fines. My tenants paid me for the fines.
My accountant is saying that Municipal Fines are not tax deductible. So I can't deduct the expense of municipal fines... Since I billed it back to my tenant I told him that they basically cancel each other out (revenue / expense of $255).
Is this true? Do I now have to pay taxes on income of $255 when I can't deduct the $255 as an expense?
For fun, I'd also love to hear if anyone else has good stories for what their accountant gave them trouble with doing...
I think your account is right.
I bought a house in 2002, the city of New York demo the building on me 2 weeks after closing. I got a 30K demo fee from the city. Nearly bring a tear to my eye!!
Lucky, the new house I built on the lot went into a biding war.
You cannot deduct it, unless the tenant was supposed to maintain it and you got stuck with the bill.
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