Chapter 8 student f10

Chapter 8 student f10 - CHAPTER 8 BUSINESS DEDUCTIONS...

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CHAPTER 8 BUSINESS DEDUCTIONS
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Trade or Business IRC §162 – “… allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business…” Ordinary Necessary Reasonable Conduct of business
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Business Expenses Allowed/Disallowed Contrary to Public Policy Legal Expenses Expenses related to Illegal businesses Trafficking in controlled substances Political contributions Lobbying payments Excessive Executive Compensation Expenses Associated with Tax Exempt Income Capital Expenditures Personal Expenditures
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Meals and Entertainment Expenses Very restricted 50% of meals and entertainment 100% of transportation costs Directly related to versus Associated with Club dues Business gifts
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Travel versus Transportation Tax Home Commuting Amounts Deductible Business vs. Pleasure (or combined)
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Domestic Production Activities Deduction What is it? Why does it exist? Who is entitled? “manufacture, produce, grow, or extract tangible products entirely or in significant part within the United States
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Domestic Production Activities Deduction Percentage amount for 2010 is 9% of the lesser of: The qualified production activities income for the taxpayer for the taxable year, or Taxable income (determined without regard to this deduction) for the taxable year Deduction may not exceed 50% of W-2 wages
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This note was uploaded on 04/15/2011 for the course ACC 5170 taught by Professor Jones during the Spring '10 term at Wayne State University.

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Chapter 8 student f10 - CHAPTER 8 BUSINESS DEDUCTIONS...

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