Luke is a self-employed painting contractor who bribed a city council member to vote to award...

 

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Luke is a self-employed painting contractor who bribed a city council member to vote to award Luke a contract with the city. Luke paid $5,000 for the bribe, was later investigated and fined $2,400 by the city, and was not awarded the $100,000 painting contract that he wanted. How much can Luke deduct on his Schedule C for the bribe he paid? Luke is a self-employed painting contractor who bribed a city council member to vote to award Luke a contract with the city. Luke paid $5,000 for the bribe, was later investigated and fined $2,400 by the city, and was not awarded the $100,000 painting contract that he wanted. How much can Luke deduct on his Schedule C for the bribe he paid?

Answer rating: 100% (QA)

In many jurisdictions bribes are generally not considered legitimate business expens... View the full answer