Under the new reimbursement arrangement, employees can substantiate to Employer D the actual amount of deductible expenses
incurred in purchasing their equipment in connection with performing services for Employer D.
It is a deductible expense
while the property is held, based on the premise that the property is declining in value over time due to wear and tear, usage or obsolescence.
Staff entertaining is a deductible expense
for your company, however there is potentially an income tax charge on the employee, where the cost per head exceeds pounds 150, and the party is not available to all employees.
By transferring the intangible assets to the holding company and charging a fee to the operating company for the use of the patent or trademark, the company creates a deductible expense
for the operating company while freeing the income from taxes.
Long term care insurance premiums can be a tax deductible expense
and we believe a percentage of seniors neglect to take advantage of the deductibility," declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group.
The long-standing rule for corporate client entertaining is that it is not a deductible expense
for tax purposes.
Yet, according to a Norwich Union Healthcare survey, seven in 10 firms fail to protect themselves and their staff with income protection insurance even though the cost is a tax deductible expense
Many corporations use vacations as a motivating incentive, often a deductible expense
The Court of Federal Claims reviewed prior cases and determined that classification of such a payment as either a deductible expense
or a constructive dividend is based on five factors.
Thus, the mismatch of income inclusion versus deductible expense
previously enjoyed by taxpayers using SIFL to value personal use may be a thing of the past.
Communications Expenses - Anytime a personal cell, telephone or Internet connection is used for business use, that is an additional deductible expense
, which is often missed.
Additionally, a taxpayer could argue cleanup expenditures should be a currently deductible expense
under regulations section 1.
162-25T limits the deductible expense
to actual cost.
All the factors together determine how much must be contributed to the pension plan each year to reach the ideal amount; this contribution is a deductible expense
The IRS contended that the corporation had intentionally inflated the shareholders' salaries to create a deductible expense
to circumvent the double taxation on corporate distributions.