The primary issue is whether the issued warrants constitute (1) a sales discount or allowance excludible from gross sales; (2) an ordinary and necessary business expense
deductible under Sec.
Just as business expenses
covered through barter are deductible to the same extent as cash, barter used as compensation is subject to personal taxes.
For 2003, P could deduct lease payments of $7,000 ($1,000 per month x 7 months) as a business expense
The Internal Revenue Service denied the deductions, claiming that because the taxpayer had an office provided by the company at her place of work, she could not claim a home office deduction and questioned the deductibility of the computer and printer as business expenses
P claims that the removal and encapsulation costs were ordinary and necessary business expenses
If the corporations are engaged in a unitary business, the interest expense is arguably a business expense
from the unitary business.
The Ninth Circuit agreed with the Tax Court that an expenditure represents a reimbursed employee business expense
only if it first qualifies as a trade or business expense
under IRC section 162.
per curiam (71-2 USTC [paragraph] 9598), the court decided that, generally; litigation costs advanced of paid by lawyers on behalf of their clients based on contingent fee contracts under which the clients are obligated to repay the litigation costs if matters are resolved successfully are treated in the year paid as loans to the client, not as ordinary and necessary business expenses
38) The allowed deductions following an abandoned transaction are deductible as a loss under section 165, as opposed to deductible as an ordinary and necessary business expense
under section 162(a).
Conour treated these purchases as in-kind compensation for tax purposes and deducted them as a business expense
7) Tax Administration: Recurring Issues in Tax Disputes Over Business Expense
Deductions, United States General Accounting Office (GAO/GGD-95-232, Sept.
In any case, the organization can then use the contribution to pay the legal fees, and deduct them as an ordinary and necessary business expense
Documentation is key to ensuring a tax advantage for using corporate aircraft as a trade or business expense
The expense must be one the taxpayer otherwise can deduct as a trade or business expense
(an ordinary and necessary expense paid or incurred during the tax year to carry on any trade or business) under IRC section 162.
Whenever a legitimate business expense
deduction is denied or an additional compliance cost is imposed, the competitive position of the country as a whole is clearly diminished.