Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

penalty for sole prop

misskeiko
Level 4

Hi,

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

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
George4Tacks
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. 

 


Here's wishing you many Happy Returns

View solution in original post

9 Comments 9
Just-Lisa-Now-
Level 15
Level 15

what kind of penalty?


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
misskeiko
Level 4

it is late fee for insurance

0 Cheers
George4Tacks
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. 

 


Here's wishing you many Happy Returns
itonewbie
Level 15

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

---------------------------------------------------------------------------------
Still an AllStar
misskeiko
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?

0 Cheers
itonewbie
Level 15

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

---------------------------------------------------------------------------------
Still an AllStar
misskeiko
Level 4

Thank you!

0 Cheers
misskeiko
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.

0 Cheers
sjrcpa
Level 15

Penalties are not deductible.