However, there is an inherent tax benefit since fees deducted
from an IRA are not subject to income tax.
4) The taxpayer must not deduct
any payroll taxes with respect to any employee whose pay could exceed the wage caps at the time the accrued wages are paid (i.e., within the 2.5 months after the year-end).
[Sections] 1.162-4, the cost of incidental repairs that neither materially add to the value of property nor appreciably prolong its life, but rather keep it in an ordinarily efficient operating condition, may be deducted
as an expense.
Since Congress believes that a single economic loss should only be deducted
once, the 2004 American Jobs Creation Act added Sec.
The pre-1994 interest of $787,994 had not been deducted
by the taxpayer due to the restrictions of IRC section 267(a)(2).
73-146, taxpayers presumably should be allowed to follow the IRS's guidance and deduct
costs related to payments to employees to terminate unexercised stock options and warrants.
Rather, I would have to wait to deduct
the loss until the amount of potential recovery is ascertained.
This leaves open the slight chance that if a future taxpayer can prove its postacquisition activities determined the amount paid to settle the assumed debt, it could deduct
A beneficiary of a qualified subchapter S trust may deduct
suspended losses under the at-risk rules and the passive loss rules when the trust disposes of the S corp stock.
You can deduct
the business percentage of payments you make for utilities and general home services.
Briarcliff is merely one example of the well-settled principle of federal income tax law that ordinary expenses of an ongoing business are properly treated as expenses of the current period.(30) Thus, an already established and going concern may deduct
ordinary and necessary expenses incurred in the expansion of its existing normal business activity.(31) Expenses that are deductible as costs incurred in the expansion of a business include expenditures by an existing company for the purposes of developing a new sales territory,(32) increasing sales through promotional activities,(33) and developing foreign markets.(34)
In FedEx Corp., 2/16/05, the Sixth Circuit affirmed a district court's decision (291 FSupp2d 699 (WD TN 2003)), that the taxpayer could currently deduct
off-wing maintenance costs related to engine shop visits (ESVs) for aircraft engines and auxiliary power units (APUs).