overdraft charges for farmer

[Gretel]

Farmer has one bank account with most of the transaction being farm related.He incurred around $1,000 in overdraft charges. Would you feel comfortable taken 50% as a deduction?

[ChEAr$]

Farmer has one bank account with most of the transaction being farm related.He incurred around $1,000 in overdraft charges. Would you feel comfortable taken 50% as a deduction?

Nope. A mixed use account, personal and business, doesn't lend itself to successful pro ration of fees.

[Jesse]

Could you trace the fees directly to the checks written and charged per the bank statement?

I balance an account in which the statement lists the Check #XXXX and then ties the overdraft fee to the Check #XXXX. Then the fees directly related to the business checks could be deducted. Then again it may not be worth your time.

[Gretel]

Could you trace the fees directly to the checks written and charged per the bank statement?

I balance an account in which the statement lists the Check #XXXX and then ties the overdraft fee to the Check #XXXX. Then the fees directly related to the business checks could be deducted. Then again it may not be worth your time.

Yep, my sentiments exactly. Crossed my mind but too much time involved.

[appelman]

I'd feel comfortable.

with some kind of pro rating. But that's just a personal opinion.

[KathMorgan]

Client responsibility

Sometimes it is worth the "lesson" to the client. Either they are willing to pay you to reconcile the charges that would be deductible, they don't want to pay you in which case you get no deduction, or the client wises up and sets up a "farm" account that he uses ffor only ffarm related income and expenses. Any way the client goes you win.