Your client, Sam, is a small business taxpayer. He is under the impression that every dollar...

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Question

Your client, Sam, is a small business taxpayer. He is under the impression that every dollar...

Your client, Sam, is a small business taxpayer. He is under the impression that every dollar he spends currently related to his business will reduce his taxable income.

Required:

1 - How would you explain the tax law related to the deductibility of expenses to Sam?
2 - Why are some expenses not deductible? Provide an example of an expense to support your response.

business accounting

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