4) Advisory fees are a Tier II deduction and as such, are
deducted on IRS Form 1040, Schedule A.
Maximizing Clients' Income Tax Savings: Deducting Your Fee
But now she produces an opinion memorandum from her assisted living owner/operator suggesting that she can
deduct the full monthly service fee of $27,600 per year.
When are fees deductible?
Following the issuance of the TAM a settlement was negotiated in the case that was almost wholly satisfactory to the taxpayer: not only were the just-in-time manufacturing training expenditures involved in the case determined to be currently deductible (or amortizable over a relatively short time frame), but it was agreed that the taxpayer's ongoing expenditures for training could be currently
deducted as ordinary and necessary business expenses.(3)
Rev. Rul. 96-62: a lump of coal or a nicely wrapped present?
Operating costs and carrying charges that are considered to be ordinary and necessary" expenses of managing, maintaining, and conserving forest land may be wholly or partly
deducted (expensed) each year as these costs are incurred-provided the woodland activity is done for profit and the expenditures are directly related to the income potential of the property.
Tax tests for woodland owners
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.
Accrued taxes: new IRS advice may accelerate payroll tax deductions
There are two tax rules that could apply Under section 1367, S corporation shareholders can
deduct losses up to the amount of their stock basis (with a corresponding reduction in basis).
Advances to S corporations
This year you can either elect to
deduct the standard mileage rate of 36.5 cents per mile (it drops to 36 cents per mile for the 2003 tax year), depreciate the cost of the car, or expense the business use costs of the car.
A less taxing bite on small business: these strategies can help reduce Uncle Sam's cut of your venture. (Management Advice)
The Claims Court permitted the taxpayer to
deduct the expenditures as repairs.
The need for additional guidance on capitalization issues
Accordingly, in the example above, to change to an accounting method under which X could
deduct in 2005 the insurance premium and equipment rental payments attributable to 2006, X would have to file two Forms 3115--one under the automatic consent procedure by the due date of the 2005 return to change to the 12-month rule for both payments, and the other under the advance consent procedure, which would have to be filed by Dec.
Sec. 263(a) 12-month rule and economic performance accounting method changes
301 allows individuals to
deduct "qualified contributions" up to 100 percent of their contribution base--to the extent they exceed other deductible charitable contributions.
Two new elections: charitable contributions and tax-free incorporations
RMC acknowledged it had not paid any of the pre-1994 interest of $787,994 to the new creditor; the court ruled RMC, therefore, could
deduct that interest only in the year it was paid.
Note sale: does it accelerate related-party interest deductions?
For miles driven prior to April 1, 1999, you can
deduct at the old rate of 32 1/2 cents.
Tips for tax season
Thus, the corporation should be allowed to
deduct the expenses under section 162(a).
INDOPCO and the tax treatment of reorganization costs
* Investment may
deduct as a theft loss stolen investment funds in the year the theft is discovered, to the extent there is no reasonable prospect of recovery.
Tax consequences to investors of broker fraud and theft: there are a number of ways tax advisers can help clients who are victims of investment fraud or theft. This article discusses the tax issues faced when trying to recoup some of the loss
Staley allowed a corporation to
deduct expenses related to defending against a hostile takeover.
Appeals court confirms treatment of assumed liabilities