penalty for sole prop

[misskeiko]

Hi,

Does anybody know where should I enter the penalty expense(Schedule C) for sole prop in lacerte? Thank you.

[Just-Lisa-Now-]

what kind of penalty?

[sjrcpa]

Penalties are not deductible.

[misskeiko]

it is late fee for insurance

[George4Tacks · Accepted solution]

To be deductible the expense must be ordinary and necessary. It is not necessary to be late in making ordinary expenses. Late fees are not deductible. 

[itonewbie]

That's why there are book-tax differences that need to be reconciled.

[misskeiko]

Yes, I understand it now. But do i need to enter the penalty anywhere on schedule C? I ask this question because I find the right place to enter nondeductible expenses for corporations. I did not see where to enter for individuals on schedule C. Thanks.

[misskeiko]

Yes, I understand we need to reconcile. But I do not find the place to put the nondeductible expense on schedule C. Do i need to put the penalty number at somewhere?

[itonewbie]

No, not on the return for Sch C.  That belongs to the books.

[misskeiko]

Thank you!