business deductions

Question 1

business expense if:

Answer 1

ordinary and necesarry

Question 2

courts dont rule on

Answer 2

widsom

Question 3

expenses of employees…

Answer 3

unreimbursed may be deducted BTL

Question 4

so (employee expenses) generally deductible but we know..

Answer 4

only 30% itemize.. soo… not really.

Question 5

employees want to include…but cant

Answer 5

housekeeper, commuting, general purpose clothes. because there is a consumption element.

Question 6

This leads to an inequity for taxpayers for child care costs

Answer 6

congress creared large number of tax breaks. (Credit for 1050 or 2100 (2+), dependant care assistance exclusion, lucas uses break for up to 5k FSA.

Question 7

employees clothing for work

Answer 7

has two tests, objective, subjective

Question 8

subjective test:

Answer 8

tax court precedent- you can deducrt if… 1. essential to employment. 2 not suitable for YOUR generl use

Question 9

objective test

Answer 9

5th circuit adoptd : 1 if its reqired
2. not fit for general use
(Fire fighters uni)
You can dedcuct if.. meet test

Question 10

Bus deduction

Answer 10

161, ATL if 162