69-587 and Eastman Kodak, provide a framework for determining whether the taxpayer, in the instant case, can deduct the employment taxes related to the accrued vacation and bonus pay if it establishes certain elements.
The taxpayer must establish these facts before being allowed to currently deduct employment taxes related to vacation/bonus pay accrued at year-end but not paid until the subsequent year:
Even so, the court permitted the taxpayer to deduct
the fees as ordinary and necessary employee business expenses.
404(a) and (a) (5), S could deduct the payments only if (1) they would otherwise be deductible as Sec.
351 property-for-stock transfer to deduct a transferred liability.
274(n)(2) allows the taxpayers to deduct the entire cost of the meals if they are a Sec.
Employers who provide free meals to employees may be able to fully deduct the cost, according to the Tax Court in Boyd Gaming Corp.
No passive loss limitations: Partners can fully deduct their share of the partnership's operating expenses (such as rent, salaries, office expenses and professional and management fees), without regard to the passive loss limitations.
This reduction may limit the partner's ability to fully deduct charitable contributions.
In DeCou,(30) a real estate developer was allowed to deduct
currently an abnormal retirement loss arising prior to demolition.
Under the procedure, the buyer also may deduct
the seller-paid points as long as he also reduces his cost basis in the home.
For ACE purposes, G is allowed to deduct
the 80% DRD to the extent that the dividend it received from R is attributable to earnings subject to Federal income tax.
In order to deduct
education expenses, a taxpayer must be engaged in the "carrying on" of a trade or business.
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?