An accrual method taxpayer currently deducts
payroll taxes on year-end accrued vacation and bonus pay in the year before these taxes or the related compensation are paid.
Under ordinary depreciation, every business, even a corner morn-and-pop grocery, deducts
the cost of each investment over its lifetime.
For example, if a corporation deducts
legal fees arising out of the action of its agents, equity holders or employees, it must pay or incur the amount for its own benefit, rather than theirs.
Using appropriate (or available) allocation percentages, the timeshare owner compares his or her rental income to allocable rental expenses (including allocable interest and property taxes) and deducts
those expenses up to the amount of rental income on Schedule E, according to Prop.
(For taxpayers who bought a residence after December 31, 1990, but before April 4, 1994, the basis reduction is required only if the buyer deducts
the seller-paid points.
For Federal income tax purposes, T, in effect, deducts
the remaining percentage face value of the voucher from gross income when the voucher is redeemed for a ticket.
Based on Manierre, 4 BTA 103 (1926), and Plainfield-Union Water Co., 39 TC 333 (1962), the test for determining whether a taxpayer deducts
maintenance costs properly depends on its meeting the three basic criteria:
76-28, a contribution is on account of the preceding tax year if (1) it is treated as if it were actually made to the plan on the last day of the preceding tax year and (2) the employer either deducts
the contribution on its income tax return for the preceding tax year or designates in writing to the plan trustee that the contribution relates to the preceding tax year.
The total cost allocable to these flights is about $340x a year, which Z fully deducts
Letter Ruling 9625012(43) held that if an employee's required contribution is deducted
from his after-tax salary on his paycheck, the employee's contribution is taxable; but if the employer "grosses up" the employee's salary for the required contribution and then deducts
the identical amount from his after-tax salary, the deducted
amount is an employer contribution excludible from gross income under Sec.
(New York limits the deductibility of itemized deductions by as much as 50% of the Federal allowable amount.) 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.
It somewhat dismissed the long-standing basic principle that an accrual-method taxpayer properly deducts
a liability in the year in which the liability is incurred, regardless of when it is paid.
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