Question

Andrew, who operates a laundry business, incurred the following expenses during the year. • Parking ticket of $250 for one of his delivery vans that parked illegally. • Parking ticket of $75 when he parked illegally while attending a rock concert in Tulsa. • DUI ticket of $500 while returning from the rock concert. • Attorney’s fee of $600 associated with the DUI ticket. What amount can Andrew deduct for these expenses? A. $0 B. $250 C. $1100 D. $600

Answer 1

The correct option is option A $0.

Explanation- None of the expenses given above are deductible. The reason for this will be:

$75 for parking ticket, $500 for DUI ticket while returning from the concert and $600 for attorney fees associated with the DUI ticket are all the expenses of personal nature so all these expenses are not to be allowed as deduction.

Though $250 is used for business purposes of his laundry business but since it is the violation of the public policy since the delivery van was illegally parked so nothing will be allowed as deduction.

Thus no amount of these expenses will be allowed as deduction to Andrew.

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