Deductions in general

Question 1

Formula for deductions

Answer 1

1. Is it deductible
2. When is it deductible?
3. ATL or BTL deduction

Question 2

Why are you entitled to deductions?

Answer 2

Profit seeking expenses lessens the amount availble for economic income ( consumption + changes in savings)

Question 3

Why not personal expenses entitled to deduciton? VACA

Answer 3

form of consumption. So while savings went down, consumption increasd.

Question 4

goal for tax is to tax economic income so that why we

Answer 4

allow deductions for PSE, but not persona.

Question 5

PSE deductable through section

Answer 5

162

Question 6

When is it deductible?

Answer 6

Its through legislative grace, so must have a specific provision that allows. (16)2)

Question 7

Key words for allowance provision

Answer 7

162- shall be allowed

Question 8

two general categories for allowance privisons

Answer 8

1. PSE 162; 212 investment expenses

2. Personal expenstions which is an exception—262

Question 9

examp;es of deductibe personal

Answer 9

home mortgage interest, extraodrinary medical expenses.

Question 10

When is it deductible?

Answer 10

Important for capitilzation