Question

Question 1
Fines and penalties paid to the government for the violation of a law are:
Question 1 options:

1)

Generally deductible for tax purposes as business expenses

2)

Not deductible for tax purposes

3)

Deductible if ordinary and necessary

4)

Deductible if reasonable in amount

Question 2
The tax laws generally allow taxpayers to deduct expenses incurred while violating public policy, provided that the expenditure is ordinary and necessary for the taxpayer's trade or business.
Question 2 options:
   1) True
   2) False

Answer 1

Q 1) Fines and penalties paid to the government for the violation of a law are:
Correct answer is:
2) Not deductible for tax purposes
Q 2) The tax laws generally allow taxpayers to deduct expenses incurred while violating public policy, provided that the expenditure is ordinary and necessary for the taxpayer's trade or business.
Correct answer is:
2) False

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