Non Deductible Expenses

Question 1

Personal expenses

Answer 1

family or living

Question 2

Capital expenditures

Answer 2

Significant outlays that produces long-term benefits are to be capitalized not deducted

Question 3

Entertainment

Answer 3

No deduction unless specifically related to business.
Goodwill/entertainment facilities- not deductible
Bus entertainment: 50% fo the cost
Traditional deductions- meal on premise, recreational expenses

Question 4

Business gifts

Answer 4

$25 per person per year

Question 5

Federal Taxes

Answer 5

no deduction

Question 6

Political contributions

Answer 6

no deduction

Question 7

Hobbies

Answer 7

no deduction -

For profit- profit for 3 or more year within 5 consecutive years

Question 8

Standard deduction

Answer 8

Single person is $5,800 and $11,600 for married; over 65 additional $1,450 or $1,150 (married- each)

Question 9

Personal exemptions

Answer 9

Additional $3,700 for each dependent
Child- more than half of his support from taxpayer and GI must be less than the personal exemption amount

Divorced child- custody for greater portion of the year