2841.No Deductions on Gross Income From Illegal Conduct
(Rev. & Tax. Code, § 17282(a))
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.]
New January 2006
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).