Defending the provision, White House officials said it was rare for companies to obtain a tax-free federal subsidy and be able to deduct it as well.
Anyway, he said, he planned to deduct it as a business expense.
If you've made a personal loan that can't be repaid, you can deduct it as a short-term capital loss on Schedule D in the year you conclude you'll never collect.
In 1967, we took Robert F. Kennedy, then a New York Senator, on a helicopter ride to show him the sources of pollution in the City and why GNP had to stop adding pollution as useful product, instead of deducting it as a cost.
According to 20th Century Fox accounts, however, by April 1980 when the film had earned a reported $100 million at the box office, after advertising, distribution fees, penalties and other costs were deducted, it was still recorded as having made a loss to the studio of $2.4 million.
If a company pays an executive $1 million in cash, it has to deduct it from earnings as a business expense.
"We'll have to deduct it out of your commissions as we move forward," he said, using a euphemism for bribes.
Only if you were an "accrual basis taxpayer," and had previously counted the $2,000 as reportable income at the time it became due to you, could you deduct it now, as it hasn't actually arrived and is a lost cause.
Because the merged utility here would pay reduced taxes, as it deducted its high debt payments, electricity and gas rates would include what amounts to a forced loan from customers to the utility at zero interest.
