Sch C 101 question

[karen]

Can local and state income taxes related to a Schedule C business net income be deducted on the Sch C Line 23 taxes and licenses?

Thanks

[jainen]

convenience of the employer

>>Can local and state income taxes related to a Schedule C business net income be deducted on the Sch C Line 23 taxes and licenses?<<

No. Personal income taxes are--well, personal. Although they are assessed against business income, they are not costs of operating the business. In the same way, capital gains tax is not an investment expense, even though a savvy investor must consider it in calculating after-tax yield or return on investment. And a W-2 wage earner must decide if he is getting enough take-home pay, but he certainly doesn't pay income tax for the convenience of the employer!

[Black Bart]

Spoilsport

>>Can local and state income taxes related to a Schedule C business net income be deducted on the Sch C Line 23 taxes and licenses?<<

No.

Next thing, you'll be saying barbers and tax preparers can't take fuel tax credit for their clippers and copiers.

[ChEAr$]

Also

Don't forget to compute telephone excise tax credit on actual long distance charges
incurred by barbers.

[jainen]

It would be dishonest

>>barbers and tax preparers can't take fuel tax credit for their clippers and copiers<<

It would be dishonest for me to claim a deduction for the copier, because I sneak next door after hours and use theirs.