tloonya
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Post by tloonya on Jan 26, 2012 9:53:16 GMT -5
Can you write off charged by the bank Insufficient fund fee for business?
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Deleted
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Post by Deleted on Jan 26, 2012 9:55:16 GMT -5
Jerry: So, we're going to make the post office pay for my new stereo, now?
Kramer: It's a write-off for them.
Jerry: How is it a write-off?
Kramer: They just write it off.
Jerry: Write it off what?
Kramer: Jerry all these big companies they write off everything.
Jerry: You don't even know what a write-off is.
Kramer: Do you?
Jerry: No, I don't.
Kramer: But they do - and they are the ones writing it off.
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tloonya
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Post by tloonya on Jan 26, 2012 10:26:51 GMT -5
Arch! I could always count on your useless post. And you are always FIRST to do it in my threads...even in THIS forum. I actually escaped hoping you will not find me here. But no such luck!
NOW tell me something usefull or I will write YOU off from my list of favorite peeps!
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Deleted
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Post by Deleted on Jan 26, 2012 10:30:05 GMT -5
Arch! I could always count on your useless post. And you are always FIRST to do it in my threads...even in THIS forum. I actually escaped hoping you will not find me here. But no such luck! NOW tell me something usefull or I will write YOU off from my list of favorite peeps! Now that would be a travesty that I am not sure I could handle. Business Bank Account Overdraft fees charged to a business bank account are tax deductible as long as the account is used solely for business purposes. If you are self-employed, you can claim overdraft fees as a tax deductible expense as long as your business account is kept completely separate from your personal account. Bank statements are generally used to show proof of overdraft fees. Tax Reporting If you are not self-employed, you must list your overdraft fees as an itemized deduction on Schedule A. If you are self-employed, you must list your overdrafft fees on the business expense section of Schedule C. If you have a qualifying home office, you can claim the business overdraft fees on Form 8829. |
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Deleted
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Post by Deleted on Jan 26, 2012 10:32:41 GMT -5
I forget, is your business incorporated? If so, is it a C corp? S Corp? LLC? none of the above?
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tloonya
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Post by tloonya on Jan 26, 2012 11:17:46 GMT -5
OK. Now you are talking. I am C or S...small one
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Deleted
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Post by Deleted on Jan 26, 2012 11:20:19 GMT -5
A are the small ones.
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tloonya
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Post by tloonya on Jan 26, 2012 11:29:34 GMT -5
You not talking corporation now are you?  |
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Post by Savoir Faire-Demogague in NJ on Jan 26, 2012 11:30:06 GMT -5
Jerry: So, we're going to make the post office pay for my new stereo, now? Kramer: It's a write-off for them. Jerry: How is it a write-off? Kramer: They just write it off. Jerry: Write it off what? Kramer: Jerry all these big companies they write off everything. Jerry: You don't even know what a write-off is. Kramer: Do you? Jerry: No, I don't. Kramer: But they do - and they are the ones writing it off. That was an excellent piece of writing in that particular episode.  |
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tloonya
Junior Associate
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Joined: Dec 18, 2010 16:22:13 GMT -5
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Post by tloonya on Jan 26, 2012 13:50:39 GMT -5
What about bank service fee?
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Deleted
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Post by Deleted on Jan 26, 2012 14:27:27 GMT -5
Yes. The basic rule you can go by is that ALL business expenses are deductible.
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mwcpa
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Post by mwcpa on Jan 26, 2012 21:00:25 GMT -5
provided the account is a business only account the banking fees are a deductible business expenses.
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taxref
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Post by taxref on Jan 26, 2012 21:42:54 GMT -5
"If you are not self-employed, you must list your overdraft fees as an itemized deduction on Schedule A. If you are self-employed, you must list your overdrafft fees on the business expense section of Schedule C. If you have a qualifying home office, you can claim the business overdraft fees on Form 8829."
I would have to disagree with the first and last sentence. Personal overdraft fees are not deductible. Business overdraft fees are deducted on Schedule C regardless of having a home office or not. They are not deducted on Form 8829.
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mwcpa
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Post by mwcpa on Jan 28, 2012 6:56:59 GMT -5
good point ref.... but the account must be a "business only" account..... co-mingled funds will not afford a deduction for these fees since IRS position would be that the account was a personal account....
the same issue comes up when a self employed person uses a personal credit card with commingled transactions, the interest charges that may be incurred may not be deductible. This is a reason I tell all my clients keep personal and business only credit cards if you need to charge items and do not full pay each month.
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tloonya
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Post by tloonya on Jan 28, 2012 11:34:17 GMT -5
My business account called Business account in the bank and my personal called Personal.
So it is pretty much business only. Thanks guys
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mwcpa
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Post by mwcpa on Jan 29, 2012 7:47:57 GMT -5
"business account called Business account in the bank"
what you call an account has no bearing.... it's the activity in the account that determines things.... I have many clients who have "personal" accounts (self employed) that use one account for business only and another for personal only (which is evidenced by the transactions)... the way the account is used is key, not what you call it.... substance over form
"So it is pretty much business only"
Again, co-mingled funds, unless a detailed accounting is made, will cause things like "interest" and "fees" charged to the account to be personal/non-deductible expenses. The account should be for BUSINESS only.... you should not co-mingle funds.... (especially if you are set up as a corporation was you note)
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