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penalty for sole prop

Level 4

Hi,

Does anybody know where should I enter the penalty expense(Schedule C) for sole prop in lacerte? Thank you.

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Level 15

To be deductible the expense must be ordinary and necessary. It is not necessary to be late in making ordinary expenses. Late fees are not deductible. 

 


ex-AllStar

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9 Replies 9
Level 15
Level 15

what kind of penalty?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
Level 4

it is late fee for insurance

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Level 15

To be deductible the expense must be ordinary and necessary. It is not necessary to be late in making ordinary expenses. Late fees are not deductible. 

 


ex-AllStar

View solution in original post

Level 15

That's why there are book-tax differences that need to be reconciled.

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Still an AllStar
Level 4

Yes, I understand we need to reconcile. But I do not find the place to put the nondeductible expense on schedule C. Do i need to put the penalty number at somewhere?

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Level 15

No, not on the return for Sch C.  That belongs to the books.

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Still an AllStar
Level 4

Thank you!

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Level 4

Yes, I understand it now. But do i need to enter the penalty anywhere on schedule C? I ask this question because I find the right place to enter nondeductible expenses for corporations. I did not see where to enter for individuals on schedule C. Thanks.

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Level 15

Penalties are not deductible.


ex-AllStar