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John is the owner of a real estate business and has been successful....

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Accounting

John is the owner of a real estate business and has been successful. He feels that his reputation is a large part of his success. He acquires 30% of a restaurant in the community. The restaurant does not do well and files for bankruptcy in six months. The bankruptcy is reported in the local news. Many of the restaurants creditors also have real estate dealings with John. His real estate business begins to decline. John feels it is due to the bankruptcy of the restaurant. He uses earnings from his real estate business to pay off the creditors. May John claim those payments as a business expense for the real estate company since he used them to help save the business reputation of his real estate firm?

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