Thus, for a taxpayer to currently deduct employment taxes on accrued vacation/bonus pay that is paid in the subsequent year, it must meet the all events test and economic performance must have occurred with respect to the liability.
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.
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.
Willie can deduct
the remaining $150 of property taxes on Schedule A.
162(a), a taxpayer can deduct
all the ordinary and necessary expenses paid or incurred during the tax year in carrying on any trade or business.
2001-4 appear to set some taxpayer-friendly standards for determining when taxpayers can deduct
, rather than capitalize, major maintenance expenses.
404(a) and (a) (5), S could deduct
the payments only if (1) they would otherwise be deductible as Sec.
274(n)(2) allows the taxpayers to deduct
the entire cost of the meals if they are a Sec.
* Elimination of AMT issues: A partner in an investment partnership cannot deduct
any of his share of the partnership's operating expenses against the alternative minimum tax (AMT) because the deductions are treated as miscellaneous itemized deductions, not deductible when computing the AMT.
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.
This case seems clearly distinguishable from K-U's casualty loss issue, since Wallingford dealt with a successor corporation attempting to deduct
voluntary payments on a predecessor corporation's debt.
Is the taxpayer entitled to deduct
these expenditures, or are they considered nondeductible advances?
If a fee is paid to enable either the lessor or lessee to enter into a more favorable lease, the cancellation fee must be amortized over the period of the new lease.(13) If a lease is canceled and the lessee does not enter into a new lease for the same premises, the lessee can deduct
currently any unamortized acquisition costs.(14)
Refinancing points are deducted
over the life of the loan.