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Employee
February 3, 2024
Question

Business expense but no longer in business since 2012

  • February 3, 2024
  • 1 reply
  • 0 views

Retired from home improvement 12 years ago. Most clients are my friends… One just had some roof leaks show up after 15 years and I tried to correct them with limited success. Ended up putting on two tarps and gave a check for $2,000. Total about  $2350. Is there anyway to expense this. 

    1 reply

    February 3, 2024

    were you legally obligated to make those repairs?   there is Rev Rul 73-226 that allowed a corporation to deduct payments made to protect its name, reputation, and future business reputation. so unless you were legally obligated to make those repairs I don't see a tax deduction because you've been out of business for so ; long. there is nothing you are really protecting.

     

    others could have a different opinion