Tax Deductibility

[Julie Eskenazi]

My husband had a license & permit bond that was required by our state to insure payment of state taxes related to his company's sale of wine in our state. As his wife, I was required to co-sign the bond by the bonding company, even though I was not a participant in his business. State taxes became due for the wine sales, and he neglected to pay the taxes. The bonding company paid the taxes and came after both of us for the taxes they paid on my husband's company's behalf. I paid the bonding company from my personal money (not related to his business). We file separate tax returns in 2008. Is the amount I paid the bonding company deductible by me in Schedule A of my 1040 as a "state or local tax paid"?

[marietta68]

This is a question that can be answered legally only by a CPA.