Tax Tip: Items that are NOT deductible - KOTA Territory News

Tax Tip: Items that are NOT deductible

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By Barrett Phillips

According to Certified Public Accountant, Kevin Sickels, food, automobiles, and jewelry are not deductible.

The only exception is if you use those items solely for business purposes. If you don't, you could face a fine, or an audit from the IRS.

"It really depends on the size. It could be a five percent penalty; there could be a 20 percent penalty; there could even be a 50 percent penalty on the tax due that they would assess depending on how grossly understated your income is," said Sickels.

Sickels added, if the IRS thinks you are knowingly deducting non-deductible items, the penalties could be worse.

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