Deductible Expense Archives - Page 3 of 5 - John R. Dundon II, Enrolled Agent

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Deductible Expense

14 Sep Are Cell Phone Expenses Tax Deductible?

Posted at 00:00h in Deductible Expense, Small Business, Sub-chapter S, Tax Guidance & Preparation

I've been getting asked this question quite a bit so I put it directly to the IRS. My guess is that I wasn't the only one who asked because today the Internal Revenue Service issued guidance designed to clarify the tax treatment of cell phones. The...

12 Jul Hobby v. Business determined based on how records were kept: TC Memo 2010-92

Posted at 00:00h in Business Expense, Deductible Expense, Disallowed Expenses, IRS Penalties, NOL, Tax Guidance & Preparation, Tax Problems & Requests, Taxable Income

If you think you have a viable ongoing business with a profit motive be sure to maintain adequate financial records on a computer that you back up off site on a regular and consistent basis. Also be aware that in the tax court case of Chandler...

08 Jul Home Office Deduction: IRS Publication 587

Posted at 00:00h in Business Expense, Cost Basis, Deductible Expense, Home Office, Self Employ, Small Business, Sole Proprietor, Sub-chapter S, Tax Abuse, Tax Guidance & Preparation

Okay I'm taking another case to IRS appeals regarding the home office deduction. In preparation I reviewed IRS Publication 587: Business Use of Your Home and I pulled some relevant quotes. "You can have more than one business location, including your home, for a single trade...

05 Jul Do You Have A Business? Or Is It A Hobby?

Posted at 00:00h in Appeals & Audit Resolution, Audit Reconsideration, Business Expense, Correspondence Audit, Deductible Expense, Disallowed Expenses, Entity Classification, IRS Audit, IRS Examination, Tax Deductible Expenses

The IRS has developed a rule of thumb for analyzing business losses called the Hobby Loss Rule of Thumb that basically says if a business reports a net profit in 3 out of the last 5 years it is presumed to be a for-profit business. Similarly...

01 Jul Amortization of Intangible Costs

Posted at 00:00h in Capital Gain, Capital Loss, Cost Basis, Deductible Expense, Organizational Costs, Passive Activity, Start up costs, Tax Deductible Expenses, Tax Guidance & Preparation

Also commonly referred to as 197 Intangibles, the following costs must be amortized (deducted as an expense) over 15 years (180 months) starting with the later of (a) the month the intangibles were acquired or (b) the month the trade or business or activity engaged...

18 Mar Punitive Vs. Compensatory Determines if Payment is a Deductible Expense

Posted at 00:00h in Deductible Expense

Stephens V. Commissioner, 93 TC 108 showed that any payment labeled 'restitution' or 'punitive' is non-deductible as an expense. If the payments are labeled 'compensatory' then in order for the payment to be a deductible expense the question of whether the 'compensatory' expense was ordinary...

11 Mar How Can Someone Legitimately Deduct the Cost of a Ski Trip

Posted at 00:00h in Deductible Expense

So in that I'm a self professed ski bum I often get asked on the chair lift by total strangers how someone can legitimately deduct the cost of s ski trip on their taxes. Today for some strange reason I felt compelled to research the...

01 Oct IRS Provides Relief for Homeowners with Corrosive Drywall

Posted at 00:00h in Deductible Expense, Tax Problems & Requests, Tax Relief

The Internal Revenue Service today issued guidance providing relief to homeowners who have suffered property losses due to the effects of certain imported drywall installed in homes between 2001 and 2009. Revenue Procedure 2010-36 enables affected taxpayers to treat damages from corrosive drywall...

27 Sep Guidelines for “Political Activities” by Churches and Pastors

Posted at 00:00h in Charitable Contribution, Church Pastor Religion, Deductible Expense, Disallowed Expenses, Tax Guidance & Preparation, Tax Problems & Requests

Lobbying activities may expose churches in some states to election law register and reporting requirements as a political committee. Many of these statutes are unconstitutional because they expose churches to intrusive regulations for a very small amount of lobbying. The most important message I think...

23 Sep Education Expenses – Are They Tax Deductible?

Posted at 00:00h in Child Tax, Deductible Expense, Dependent, Disallowed Expenses, Family, Student Loan, Tax Credit, Tax Deductible Expenses, Tax Relief

According to IRS Publication 970, Tax Benefits for Education, questions exist to help determine if education expenses are tax deductible. These questions include: Is the expense associated with the education 'work related'? It must be to be deductible. Is the education in question required by...