Staff entertaining is a deductible expense
for your company, however there is potentially an income tax charge on the employee, where the cost per head exceeds pounds 150, and the party is not available to all employees.
Push taxable income into future periods and pull deductible expenses
into the current year.
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 court has said petitioner banks are able to prove that implementation of the questioned revenue regulation violates the petitioners' rights insofar as it imposes a manner of allocation of deductible expense
which is, as argued by the petitioners, contrary to settled practice and provisions of the tax code; that such implementation will require petitioners to dispute the tax assessments every time it is issued.
"Long term care insurance premiums can be a tax deductible expense
and we believe a percentage of seniors neglect to take advantage of the deductibility," declares Jesse Slome, executive director of the American Association for Long-Term Care Insurance, the national trade group.
The Court of Federal Claims reviewed prior cases and determined that classification of such a payment as either a deductible expense
or a constructive dividend is based on five factors.
Thus, the mismatch of income inclusion versus deductible expense
previously enjoyed by taxpayers using SIFL to value personal use may be a thing of the past.
However, the entity's deductible expense
was 10 times higher than the imputed income and, thus, was fully deductible to the S corporation, (20) under Sutherland Lumber.
The bureau imposed the punitive tax on the ground that the booking of the amount as a deductible expense
was an act of malicious income concealment, according to the sources.
The IRS also said that a deductible expense
is not converted to a capital expenditure solely because the expense is incurred as part of a reorganization.
1.162-25T limits the deductible expense
to actual cost.
Additionally, a taxpayer could argue cleanup expenditures should be a currently deductible expense
under regulations section 1.165-3(b), which, for example, permits a deduction for discovery of latent structural defects in the building after their acquisition."