Casualty losses mortgage interest certain

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Unformatted text preview: butions, Casualty Losses, Mortgage Interest, & Certain Unreimbursed Employee Expenses Employee Non-Business Losses (Personal) Not Deductible Unless Due to a Casualty (Fire/Storm/Disaster/Theft) Timing of Loss/Expense Recognition Timing of Loss/Expense Recognition Cash Method – Expenses are recognized Cash (and deducted) when PAID PAID Accrual Method – Expenses are Accrual recognized (and deducted) when INCURRED INCURRED Reserve Estimates Are Not Deductible Reserve Not Example: Bad Debts/Warranty Reserves (Must use specific write-off method) Disallowed Loss Deductions Disallowed Loss Deductions Excessive Officer Compensation Limits the Deduction by Corporation Legal Expenses For Civil/Criminal Legal Defense Defense Fines & Penalties Political Contributions Lobbying Expenditures Payment of another’s expenses or debt Limited Deductions Limited Deductions Costs of Investigating a Business If In Same or Similar Business, Then costs are deductible even if new business i...
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