Which of the following expenditures is most likely to be deductible for a construction business?
A. A fine for a zoning violation.
B. A tax underpayment penalty.
C. An "under the table" payment to a government representative to obtain a better price for raw materials.
D. A payment to a foreign official to expedite an application for a business permit.
E. An arm's length payment to a related party for emergency repairs of a sewage line.
Answer: An arm's length payment to a related party for emergency repairs of a sewage line