By transferring the intangible assets to the holding company and charging a fee to the operating company for the use of the patent or trademark, the company creates a deductible expense
for the operating company while freeing the income from taxes.
The tax authorities decided that 30 million yen the company had claimed as deductible expenses
for holding explanatory meetings on its products for hospital officials was nondeductible spending, the sources said.
106 (1950), the Tax Court held that expenses attributable to abandoned reorganizations are "a deductible expense
162-25T limits the deductible expense
to actual cost.
All the factors together determine how much must be contributed to the pension plan each year to reach the ideal amount; this contribution is a deductible expense
The IRS contended that the corporation had intentionally inflated the shareholders' salaries to create a deductible expense
to circumvent the double taxation on corporate distributions.
58) As explained in a recent technical advice memorandum,(59) a deductible expense
is not converted into a capital expenditure solely because the expense is incurred as part of the terms of a corporate reorganization.
23 (1999), the Tax Court, for the first time, specifically addressed whether a one-year rule exists for determining whether a payment is a capital expenditure or a deductible expense
Answer) Yes, it would be calculated as deductible expenses
Make sure you keep records of the entertaining - name of client, place, time and reason for the expenses - so that deductible expenses
are not disallowed due to lack of information.
for business use of a home include the business portion of real estate taxes, mortgage interest, rent, casualty losses, utilities, insurance, depreciation, maintenance and repairs.
The new programme offers eligible patients a maximum of USD 5,000 in co-pay assistance each calendar year for co-pay, co-insurance and deductible expenses
associated with their treatment without regard for their ability to pay.