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Unformatted text preview: s not acquired. acquired. If Not In Same or Similar Business, and; If Not and Business is Acquired, then up to $5,000 is Business deductible w/ remainder Capitalized & Amortized Over 15 Years. Amortized Business is Not Acquired, then Costs are Not Not Deductible. Not Limited Deductions cont Limited Deductions cont Rental and/or Vacation Homes
Primarily Personal (No Income is Reported; No Primarily Rental-Related Deductions are Allowed) Rental-Related Rental/Personal (Income is reported; Expenses Rental/Personal are deductible up to amount of rental income) up Primarily Rental (Income is reported; Expenses are Primarily deductible even when in excess of rental income) Hobby Losses (No Intent to Earn Profit)
Expenses are limited to Hobby Income 9 “Consideration Factors” on page 6-18 Must follow ordering rules listed on page 6-19 Other Deductions Other Deductions Related Party Transactions
Gains are always Recognized; Gains always Losses are never Recognized never Capital Expenditures
Subject to Depreciation Rules (Covered in Subject Chapter 8) Chapter Other Rules Other Rules Substantiation Requirements
IRS Requires Documentation to Support Deductions Support Interest Expenses Related to Purchase of Interest Tax-Exempt Securities Tax-Exempt
Interest expense is Not Deductible because Interest income earned is not taxable income...
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This note was uploaded on 12/04/2010 for the course ACCT 3200 taught by Professor Martin during the Fall '08 term at Kennesaw.
- Fall '08