IRS Field Attorney Advice 20061701F, (April 28, 2006), which may not be used or cited as precedent, considered whether accrual basis taxpayers can deduct
employment taxes on vacation/bonus pay accrued at year-end, but not paid until the next year.
On his return, J deducts
his attorneys' fees under Sec.
If a taxpayer uses a timeshare unit and it is not rented out (or held out for rent), he or she could deduct
property taxes on Schedule A, under Sec.
According to revenue procedure 94-27, effective for taxable years beginning after December 31, 1990, home buyers may deduct
mortgage points currently even if the points are paid by the seller of the property--as long as they reduce the property's cost basis by the amount of the seller-paid points.
Instead, it incurs and deducts
the actual expenses for the flight service when actually performed and the related revenue is earned and recognized.
TC Memo 2000-323, the Tax Court held that a towboat operator could currently deduct
costs associated with periodic or cyclical service and maintenance of its towboat engines, in spite of the IRS's argument that its engine maintenance procedures were equivalent to overhauls.
351 exchange could deduct
payments for a vacation pay liability assumed in the exchange.
22) the Tax Court ruled that a casino can deduct
100% of the cost of meals provided free to employees if such meals meet the de minimis fringe benefit exception of Sec.
Since a partner in a trading partnership deducts
expenses (including the allowable investment interest expense) as a trade or business expense against AGI, the full benefit of these deductions is gained.
39) A lessee on the accrual method normally deducts
advance rent either ratably over the lease period or as paid if the rent is based on usage of or income from the property, under Regs.
If a buyer deducts
seller-paid points, the cost basis of the home must be reduced by the same amount.
14/35 of the $80,000 dividend paid to B (10,000 shares x $100 par x 8%) or $32,000.
The employee deducts
or does not deduct
, the education expenses on his individual return based on Regs.
If the firm has a $10,000 deductible insurance policy, the firm pays and deducts
Is the taxpayer entitled to deduct
these expenditures, or are they considered nondeductible advances?