From press reports, TEI understands that consideration is being given to a proposal to deny a business deduction
for interest paid by corporations on income tax underpayments.
The reason is that section 172(d)(4)(C) treats a deduction for casualty or theft losses allowable under section 165(c)(2) or (3) as a business deduction
, including for a noncorporate taxpayer.
Special use valuation and the qualified family-owned business deduction
each reduce the taxable estate, the amount to which graduated estate tax rates are applied, and, ultimately, an estate's tax liability.
19), any deductible casualty loss will be deemed a business deduction
A similar conclusion allowing the interest as a business deduction
was reached in the Eighth Circuit.
A taxpayer bought the property it occupied as a tenant and was allowed a business deduction
for the portion of the purchase price attributable to an excessive lease.
Dentures: Not allowed as a business deduction
for an actor (to enable him to enunciate without a hiss).
With this shift CPAs must be prepared to justify expenses for the use of such aircraft as a business deduction
for their employers or clients.
Even if the deduction remains intact when Congress is finished, it appears the administration's health care reform package could eliminate this business deduction
and reduce the deduction for C corporations.
A business deduction
must be "ordinary and necessary" to the production of income in your business.
In addition, other factors may apply, such as applicable discounts and premiums that affect FMV--for example, owning a minority or controlling block of shares--and the availability to an estate of the section 2057 qualified family-owned business deduction
62-2 is an inference that the usual strict standards for ANY business deduction
should be re-asserted, especially for the benefit of those who wish to draft a plan for granting reimburseable (non-taxable) payments to employees.