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.
Provide an alternative example of where Sam might have an expense
disallowance. Also, explain what actions Sam could take to turn a
disallowed expense into a deductible expense.
As Per the Section 162, Ordinary and Necessary Trade or business expenses are deductible from the Gross Income.
There are some expenses which are not allowed to be deducted from the Gross Income. All Personal Expenses Incurred or Paid are disallowed . Also Capital expenses need to be capitalized so will not be allowed for deduction. Any Expenses which are not legal incurred will not be allowed to be deducted.
Personal Expenses like Mortgage Interest will be allowed to be deducted subject to certain conditions as per the Section 163.
Also if the Office is at home , any expenses incurred will also be deducted.
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 - Provide an alternative example of where Sam might have an expense disallowance. 2 - Explain what actions Sam could take to turn a disallowed expense into a deductible expense.
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 - Why are some expenses not deductible? Provide an example of an expense to support your response. 2 - Explain what actions Sam could take to turn a disallowed expense into a deductible expense. 3 - Provide an alternative example of where Sam might have an expense disallowance.
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. How would you explain the tax law related to the deductibility of expenses to Sam? Why are some expenses not deductible? Provide an example of an expense to support your response. Provide an alternative example of where Sam might have an expense disallowance. Also, explain what actions Sam could take to turn...
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 - Why are some expenses not deductible? Provide an example of an expense to support your response. 2 - Explain what actions Sam could take to turn a disallowed expense into a deductible expense. PS: Please thoroughly answer both questions
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.
Your client Sam, is 30 years old and single Taxpayer. In 2019, he reported an AGI of $12,000, all from his job as a server at the local café. He is single and has no dependents. What amount of earned income credit may he claim in 2019?
You are currently working at a mid-sized certified public accounting firm. Your client is Bob Jones. Bob, age 60 and single, has recently retired from IBM. He has $690,000 available in his 401(k) fund and he is thinking of using that money to open a used car business that will be located at 210 Ocean View Drive in Pensacola, Florida. Bob has estimated that the business might make $300,000 in taxable income. Bob’s personal wealth including investments in land, stocks,...
You are currently working at a mid-sized certified public accounting firm. Your client is Bob Jones. Bob, age 60 and single, has recently retired from IBM. He has $690,000 available in his 401(k) fund and he is thinking of using that money to open a used car business that will be located at 210 Ocean View Drive in Pensacola, Florida. Bob has estimated that the business might make $300,000 in taxable income. Bob’s personal wealth including investments in land, stocks,...
Oxygen Therapy Hand-in Assignment 1. Define the term oxygen saturation. 2. List two causes that can contribute to a low Ozsat reading. 3. Define the term "continuous oxygen therapy" and explain why it is beneficial for people with chronic breathing difficulties. 4. Why is humidity added to the oxygen source before it is breathed by the client? 5. You are assigned to Mr. Cy Hendriks to provide assistance with ADLS. This client has emphysema and there is oxygen equipment in the home. While preparing to assist...
Millhouse graduated 5 years ago with a degree in business administration and is currently employed as a middle level manager for the same firecracker company his dad already worked for. His current annual salary of $60,000 has increased at an average rate of 5% per year and is projected to increase at that rate for the future. The firm has had a voluntary retirement savings program in place, whereby, employees can contribute up to 11% of their gross annual salary...