Business Expense


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Business Expense

Costs that result from having and maintaining a business. Rent and employee salaries are primary (and expensive) examples of business expenses, as are office supplies and raw materials from which to make products. Under most circumstances, business expenses are tax deductible.
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Likewise, payments made to exempt organizations that are not IRC section 170 organizations are also deductible as ordinary and necessary business expenses rather than as charitable contributions.
Charitable contribution or business deduction: Chief Counsel Advice 201543013
That reality makes it essential for franchisees to understand the rules when it comes to business expense deductions.
New season, new issues: what franchisees need to know about 2016 tax filing
However, under the new rules, local lodging expenses that meet certain criteria will be considered ordinary and necessary business expenses and therefore deductible under Sec.
Final Regs. include safe harbor for local lodging costs
Employer A divides the amount of the expenses by the number of hours the employee is expected to work in the year and then recharacterizes a portion of the employee's hourly rate as a business expense reimbursement.
IRS illustrates employee reimbursement plans
In the third quarter, consolidated and mainline CASM, excluding special charges and third-party business expense and holding fuel rate and profit sharing constant, increased 2.
-United Continental Holdings posts positive net income in Q3
Although the IRS observes that "painting the office is a business expense for the attorney," it does not state outright that the business expense is deductible for the attorney, because not all business expenses are deductible.
Finding clarity in the IRS's position on barter transactions
If a cleric's compensation includes a parsonage or housing allowance, which is excludable from gross income, the nondeductible business expense percentage is based on the ratio of the clergy's nontaxable to taxable income.
Tax planning for servants of God: unique tax rules apply to members of the clergy
If the corporations are engaged in a unitary business, the interest expense is arguably a business expense from the unitary business.
Push-down accounting and alternatives: risks and opportunities in corporate consolidations
Since the Ninth Circuit had previously ruled California law required the gross approach, the taxpayer argued the $401,000 NCM paid to the attorneys represented a reimbursed employee business expense under an accountable plan.
Contingent fee awards - a different approach
On those returns the firm deducted as an ordinary and necessary business expense litigation costs of $705,647 and $629,834 it had paid on behalf of contingent lee clients whose matters had not been resolved by yearend.
Gross income includes returned fees; advance litigation costs are loans
Thus, payment to employees was deductible as an ordinary and necessary business expense under section 162.
INDOPCO and the tax treatment of reorganization costs
Conour treated these purchases as in-kind compensation for tax purposes and deducted them as a business expense.
Reasonable inquiry required to avoid tax-preparer penalties

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