Matt Bissonnette grew up in a dinky flyspeck of a town off the Alaskan coast that you can’t get to without a boat or a plane. He ultimately escaped to join SEAL Team Six, the Navy’s most elite counterterrorism force. He took part in the 2009 mission to rescue Captain Mark Phillips from Somali pirates, a story which was told in the movie Captain Phillips. But that was just a warmup for his biggest mission: “Project Neptune Spear,” the 2011 raid that killed Osama Bin Laden.

In 2012, Bissonnette wrote a memoir called No Easy Day: The Firsthand Account of the Mission That Killed Osama Bin Laden. It earned him $6.7 million in royalties, which he planned to donate to the families of fallen SEALs. It also launched a lucrative second career as a public speaker. Unfortunately, Bissonnette broke the Pentagon rule requiring him to submit it for vetting before publishing. The day after the book landed on shelves, officials said it revealed classified information, a breach that could subject him to years in prison.

Last month, Bissonnette settled the dispute and agreed to pay back every dime of royalties, plus another $100,000 in speaking fees he earned before they approved the slides he uses in his presentations. Question: can he now deduct that payment from his taxes going forward?

Code Section 162(f) seems to shoot down any tax benefit. “No deduction shall be allowed . . . for any fine or similar penalty paid to a government for the violation of any law.” But what about payments made to settle a dispute before a fine or penalty is imposed? Treasury regulations state that payments made to settle that sort of potential liability aren’t deductible. But the regulations also state that compensatory damages do not qualify as fines or penalties.

So, that’s the $6.7 million question. Does Bissonnette’s payment serve to compensate the government for the damage his book caused? If so, then he gets his deduction. Or does it merely settle his potential liability for civil or criminal fines or penalties — in a way that benefits both the government and him by avoiding the time, expense, and potential public disclosures involved in a trial? In that case, no dice.

Bissonnette isn’t the only celebrity who may miss out on a fat tax deduction for a big gesture. Actress Amber Heard recently finalized her divorce from Johnny Depp with a $7 million lump sum payment, then announced she’s giving it all to charity. But she probably won’t get the deduction you’d expect. That’s because you can only deduct up to 50% of your adjusted gross income in any year (and carry any remaining balance forward five years). Ouch! Bet she didn’t see that coming!

Now, there are two ways Depp and Heard might be treating that $7 million. It could be a transfer between spouses, incident to the divorce. In that case, it’s nondeductible to Depp and tax-free to Heard. (Too bad her financial disclosures show she doesn’t have nearly enough income to take advantage of the full deduction.) Or it might be alimony, deductible to him and taxable to her. In that case, she’ll still owe tax on the 50% of her donation that she can’t deduct this year.

Here’s the lesson. Sometimes pricey things happen, and we console ourselves by saying “at least I get a tax deduction.” But that’s not always true, and it’s rare that value of the tax deduction is enough to compensate for the loss that creates it. So contact Ed Lloyd with Ed Lloyd & Associates before your next big transaction and make sure it serves you best!

Ed Lloyd & Associates, PLLC

Ed Lloyd & Associates is a booming Charlotte based Certified community Accountant, commonly known as CPA. The business represents imposing practical experience in designing different kinds of tax saving methodologies planned to save your hard make dollars from the shackles of tax limits. They are the leaders in the business and treat every client on a priority basis. They show to their clients different smart industry standards to legally report their costs of doing business while considerably decreasing the audit risks. Hiring Ed Lloyd & Associates the best decision for your firm, Not just this, they also offer a sharp exit strategy for your business and upgrade your retirement alternative amazingly. The unusual assessment systems adopted by them have assisted organizations in Charlotte, NC and all throughout the United States, by support them in managing their operating cost responsibly.

They are a Charlotte firm that offer plans for business holder all over the US to develop their industry and cut their profits taxes. To develop your business, you require a plan. To minimize your taxes, you require a plan. You require concepts and strategies that leave more on your baseline. Lloyd & Associates has the resources to turn your plans into actuality. You could see Ed Lloyd And Associates, PLLC presentations on SlideShare.

- Positive support during the year for your business consult, tax reduction and research needs.
– Tax reduction that makes their services an investment, not a cost.


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Welcome to Ed Lloyd & Associates, PLLC

Understanding the laws of the contemporary world and after that beginning, a business will be a straining undertaking, you will be obliged to contract somebody who can get the best of chances for your business while taking fitting consideration of the various issues identified by law and court. There are tremendous probabilities of effective in the event that you are buckling down and keeping by every one of the laws. Charge specialists and bookkeepers have made it simpler for the world to make the best utilization of the time and tide and see that they are proceeding with the strategies for success.

Ed Lloyd CPA at Ed Lloyd & Associates, PLLC: The key to a smooth duty season is essential for your contemporary business, they are going to handle every one of your records and will let you know the amount of benefit your organization is gaining for you. They will be truly committed and genuine for your business and will verify that each penny is legitimately numbered. Your business will get progressing nicely with a moral individual taking care of your records.

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Like many other important aspects of the business, accounting and tax planning form the important ones. It is crucial for you as a business owner to update your books and accounts in a timely manner so as to reach to informed decisions. One such trusted name with whom you can reckon with your accounting and tax planning needs is the Ed Lloyd. He is a great personality who is known for his expertise in the field. He is one of the most efficient CPAs and is highly recommended for his top-notch services in the United States.

Ed Lloyd CPA, PFS, CTC – Certified Tax Coach is a very trustworthy CPA and furthermore a specialist tax planner hailing from Charlotte region. In Addition to his work for famous firms, he likewise offers services to people who need help with bookkeeping and tax planning. He has been delivering exceptional accounting and tax planning services to the businesses and individuals from last many years.

The team at Ed Lloyd and Associates, PLLC -A Top Rated Firm is highly skilled, knowledgeable and passionate. They are well-versed with the nuances of tax planning and accounting and know what is to be done in order to secure your financial standing of the company. No matter whether you are looking for someone who can manage your daily accounts, or in quest of someone who can help you in auditing and tax planning, they can help you out with almost everything.


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