Deductible ATL OR BTL

Question 1

Where to look for ATL deductions?

Answer 1

62, IF NOT LISTES btl

Question 2

what does 62 do

Answer 2

cateogrizes deductions. important to cite properly.

Question 3

general rough rule

Answer 3

PSE ATL (BUSINESS) PERSONAL EXPENSES BTL

Question 4

taxpayers prfer___deductions

Answer 4

atl

Question 5

BTL deductions not great because

Answer 5

good only if you itemize nd value determined by marginal tax rate.

Question 6

examples of business expenses

Answer 6

wages, rent and utlitles for ofice, etc.

Question 7

areas of litigation

Answer 7

business/personal borderline

Question 8

approaches for when its not clearly categorized

Answer 8

1. allocation

2 all or nothing approach

Question 9

allocation approach

Answer 9

(car) keep track of miles, so 50% are business, so 50% of expenses can be deducted
easier way is to keep track of business mileage X rate alloted b IRS.

Question 10

when allocaiton isnt possible.- all or nothing.

Answer 10

either all bus. or all personal.

Question 11

In general courts dont..

Answer 11

rule on wisdom. they defer to business judgement.

Question 12

just need expenses to be

Answer 12

for business purposes. first class is cool, limo is cool.

Question 13

travel expenses

Answer 13

can deduct– this is differen than cimmuting

Question 14

Meals and lodging ( in travel status)

Answer 14

assume nonreimbursed– can deduct at 50% 274 (n)

Question 15

meals and entertainment (not in travel status)

Answer 15

1. entertainment– can be if its related to business.. must prove this. limited to 50%
2. meals- clients @50%, your meal harder to get.