2841. No Deductions on Gross Income From Illegal Conduct
When computing taxable income, no deductions are allowed on gross income derived directly from illegal activities, including <insert activity from Rev. & Tax. Code, § 17282(a)>.
In addition, no deductions are allowed on gross income that is derived from any other activities directly connected or associated with illegal activities, or that directly tend to promote or to further illegal activities.
[Prohibited deductions include deductions for cost of goods sold.]
Give this instruction if requested and relevant based on the evidence.
Where indicated, insert the specific offense from Revenue and Taxation Code section 17282(a) that was allegedly the source of the income.
Statute. Rev. & Tax. Code, § 17282(a).
(New January 2006)