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?

Answer 1

Andrew can deduct a total amount of $850 for the parking ticket and attorney's fee related to his laundry business, but not the expenses for the rock concert and DUI ticket.

Step-by-step explanation:

Andrew can deduct the expenses related to his laundry business, but only the ones that are considered ordinary and necessary for the operation of the business. In this case, the parking ticket of $250 for the delivery van that parked illegally and the attorney's fee of $600 associated with the DUI ticket can be considered deductible expenses. These expenses are directly related to the business activities and are necessary for its operation.

However, the parking ticket of $75 for attending a rock concert and the DUI ticket of $500 while returning from the concert cannot be considered deductible expenses. These expenses are considered personal in nature and are not directly related to the laundry business.

Therefore, Andrew can deduct a total amount of $850 ($250 + $600) for these expenses.