Which of the following cannot be deducted as a § 162 business expense?
A)Expenses of investing in stocks and bonds.
B)Charitable contributions made by a sole proprietorship.
C)Fines and penalties.
D)Only a.and c.cannot.
E)a. ,b. ,and c.cannot.

Question

Quizplus · Accepted Answer

Expenses of investing in stocks and bonds cannot be deducted as a § 162 business expense because they are not considered ordinary and necessary expenses incurred in carrying out a trade or business. Charitable contributions made by a sole proprietorship also cannot be deducted as a § 162 business expense because they are considered personal expenses. Fines and penalties also cannot be deducted as they are considered a punishment for violating the law or regulations. Therefore, options a, b, and c cannot be deducted as a § 162 business expense.

Which of the Following Cannot Be Deducted as a §