For example, in TAM 9716001, a corporation was able to deduct
the payment of an accrued vacation pay liability it had assumed in a 351 transaction.
Normally, when you purchase a house you may deduct
all the points paid that tax year.
Clothes, home appliances, even automobiles can be donated, and you can deduct
the fair market value," he says.
Establishing the asset's value enables the taxpayer to continue to deduct
business interest for any loan amount in excess of the asset's value as of the date of change.
The IRS allowed the company to currently deduct
the functional consulting, maintenance and training costs.
Business owners will not be able to depreciate SUVs in one lump sum of $100,000 a year, but they can deduct
up to $25,000 for vehicles that weigh under 14,000 pounds.
67-1T(a)(1), an employee can deduct
unreimbursed employment-related expenses as an itemized deduction, to the extent they exceed 2% of the employee's adjusted gross income (AGI).
Never before have small business owners been able to deduct
this much money through a defined benefit retirement plan.
1366(d)(1)(B), a shareholder can deduct
his or her proportionate share of the S losses and deductions to the extent of the shareholder's adjusted basis in S debt, the section does not specifically define "indebtedness of the S corporation to the shareholder.
In that case--on almost identical facts--the court held that the corporation could deduct
the legal fees it paid for an indispensable shareholder-employee based on Lohrke, 48 TC 679.
According to the IRS, job seekers can deduct
certain expenses incurred in looking for a new job in a job seeker's present occupation, even if they do not get a new job.
G's charitable deduction is limited to 50% of AGI, or $60,000; thus, he can deduct
the entire donation.
However, a taxpayer may deduct
these costs while he or she is away from home overnight for business purposes.
The CCA determined that the S corporation could deduct
all the expenses attributable to owning and operating the aircraft, not just the compensation reported to share holders and employees.
One of the most difficult questions a company faces is whether it must capitalize an expenditure or whether it can deduct