Myth: Traffic Tickets Are Deductible

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Have you been deducting traffic tickets for you or your employees?
That's a no-no according to IRC 162(f).


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Can you write off traffic tickets?

No. Getting a ticket while driving for business doesn't mean that the expense is deductible on your tax return (even if you pay it off with business funds). Why? A ticket is a penalty for violating a traffic statute, and the IRS does not allow you to take a tax deduction for breaking the law. 
the IRS does not allow you to take a tax deduction for breaking the law.
The rule applies to any situation where a government entity requires your business to pay a penalty or fine for violating a federal, state or local law.

What business expenses can I write off?

You can deduct the cost of defending your business in a lawsuit but any part of the judgment specifically designated as a fine is a non-deductible business expense. You would need to categorize the transaction in your bookkeeping records appropriately, so you or your accountant do not mistakenly claim a deduction on the tax return.


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