Individual Taxation Question (2016) Shirley helped her elderly, but wealthy, aun
ID: 2425403 • Letter: I
Question
Individual Taxation Question (2016)
Shirley helped her elderly, but wealthy, aunt get to a doctor's appointment during February. Although she could not drive, her aunt refused to take a cab to the doctor's office. Instead, she asked Shirley to give her a ride at 7:30 AM and Shirley reluctantly agreed. Of course, when Shirley arrived at her aunt's house, her aunt was still in bed and not ready. To avoid missing the appointment Shirley had to speed while driving. A police officer noted her speed and issued her a ticket for $250. Shirley's groggy aunt then snatched the ticket from Shirley's hand and paid the fine on Shirley's behalf.
Is this fine considered Shirley's income and does it need to be included in her gross income?
Explanation / Answer
No deduction is allowed for fines or similar penalties paid to a government for the violation of any law.
Hence ,this cannot be accountable as neither an income nor expense.