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Expense of breaking contract

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    #1

    Expense of breaking contract

    Are you allowed to write off the $$s paid to a Company because you had to break a contract with them? I have a company that their identity has been confused with another company who is in trouble with the state, IRS,anf the state has stopped them from doing business.

    Because of this, they had to break some contracts that they had in the amount of $20,000. Can I write this off somewhere?
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    #2
    Only if

    Originally posted by Barb View Post
    Are you allowed to write off the $$s paid to a Company because you had to break a contract with them? I have a company that their identity has been confused with another company who is in trouble with the state, IRS,anf the state has stopped them from doing business.

    Because of this, they had to break some contracts that they had in the amount of $20,000. Can I write this off somewhere?
    the contract was business connected. For a personal contract, no.
    ChEAr$,
    Harlan Lunsford, EA n LA

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      #3
      Expense of breaking contract

      Yes, it was business. Do I just enter it on the Sch C, other deductions?

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