Case 8-2 - that you take the full $200,000 deduction. There...

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Stephen Colbert 123 Freedom Dr. Burbank, CA, 90000 Mr. Stephen J. Colbert, I am writing to inform you that you can reasonably deduct the full amount of your compensation for tax purposes. In my research and analysis, I can advise this action with much certainty. Because you have evidence that your salary has been proportionally same in the past, it could not be considered unreasonable simply because the earnings were higher. I have found primary authorities to support this position leaving me to conclude
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Unformatted text preview: that you take the full $200,000 deduction. There are other options however, you can take the conservative approach and make a fair market deduction for the average salary of a taxpayer in a similar situation. This would ensure zero scrutiny from the Internal Revenue Service, but would increase your tax liability. However, it is my opinion that you take the full $200,000 deduction. V/R, Bradford Tennyson Aztec Accounting Services bradford.tennyson@aas.org (619) 555-8654...
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This note was uploaded on 10/24/2010 for the course ACCTG 321 taught by Professor Will during the Spring '08 term at San Diego State.

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