Business Deductions

Introduction 901
What Constitutes a Trade or Business? 902
Business Deductions — How Reported 903
What Business and Investment Expenses are Deductible 904
Current Expenses vs. Capital Expenses 905
Examples of Common Business Expenses 906
Research and Experimental Expenditures 907
Self-Employed Person’s Medical Insurance 908
Business Start-Up Costs 909
Expenses of Professional Men and Women 910
Farmers 911
Income and Expenses Attributable to Rents and Royalties 912
Business Expenses of Performing Artists 913
Traveling Expenses 914
Transportation Expenses 915
Automobile Expenses 916
The Standard Mileage Deduction 916A
Meal and Entertainment Expenses 917
Percentage Reduction for Meal and Entertainment Expense 918
Exception to Percentage Reduction Rule 919
Business Gifts 920
Substantiation of Travel and Entertainment Expenses 921
Employee’s Reimbursed Expenses 922
Education Expenses 923
Educational Assistance Programs 923A
Tax Deferred Higher Education Certificates 923B
Job Hunting Expenses 924
Other Expenses of Employees in Connection with Their Employment 925
Business Use of Home — Home-Office Expenses 926
Amount of Home-Office Expenses Deductible 927
Investment Expenses 928
Tax Return Preparation Fees 929
The Percentage “Floor” for Certain Miscellaneous Itemized Deductions 930
The Moving Expense Deduction 931
What Move Qualifies for the Deduction 932
When and How to Claim the Deduction 933
Amortization of Bond Premiums 934
Impairment Related Work Expenses 935
Higher Education Qualifying Expenses 936
Deduction for Classroom Materials 937
Deduction for Costs from Discrimination Suits 938
Section 199A Deduction – 20% deduction for Qualified Business Income 939
Early Attempts at Income Taxation 101
The Present Income Tax Law 102
Introduction – General Principles – Definitions 103
Classification of Taxpayers 104
Purpose of the Income Tax Return – Withholding and Estimated Tax 105
Accounting Period -The Taxable Year 106
Accounting Methods 107
The Cash Basis 108
The Accrual Basis 109
Change in Accounting Method 110
When to File the Income Tax Return 111
Penalties 112
Installment Payment of Tax 112A
Where and How To File Manual and Electronic Filing 113
Who Must File a Return 114
Joint Return of Husband & Wife 115
Separate Return of Husband & Wife 116
Who is considered as “Married”? 117
Special Provision for Married Persons Living Apart 118
Minors 119
The Tax Return Forms and Schedules 120
Payment of the Tax 121
Section II
Introduction 122
Gross Income 123
Deductions from Gross Income 124
Adjusted Gross Income 125
Deductions from Adjusted Gross Income 126
Taxable Income 127
Tax Credits 128
The Filing Requirements for Special Taxpayers 129
Introduction 901
What Constitutes a Trade or Business? 902
Business Deductions — How Reported 903
What Business and Investment Expenses are Deductible 904
Current Expenses vs. Capital Expenses 905
Examples of Common Business Expenses 906
Research and Experimental Expenditures 907
Self-Employed Person’s Medical Insurance 908
Business Start-Up Costs 909
Expenses of Professional Men and Women 910
Farmers 911
Income and Expenses Attributable to Rents and Royalties 912
Business Expenses of Performing Artists 913
Traveling Expenses 914
Transportation Expenses 915
Automobile Expenses 916
The Standard Mileage Deduction 916A
Meal and Entertainment Expenses 917
Percentage Reduction for Meal and Entertainment Expense 918
Exception to Percentage Reduction Rule 919
Business Gifts 920
Substantiation of Travel and Entertainment Expenses 921
Employee’s Reimbursed Expenses 922
Education Expenses 923
Educational Assistance Programs 923A
Tax Deferred Higher Education Certificates 923B
Job Hunting Expenses 924
Other Expenses of Employees in Connection with Their Employment 925
Business Use of Home — Home-Office Expenses 926
Amount of Home-Office Expenses Deductible 927
Investment Expenses 928
Tax Return Preparation Fees 929
The Percentage “Floor” for Certain Miscellaneous Itemized Deductions 930
The Moving Expense Deduction 931
What Move Qualifies for the Deduction 932
When and How to Claim the Deduction 933
Amortization of Bond Premiums 934
Impairment Related Work Expenses 935
Higher Education Qualifying Expenses 936
Deduction for Classroom Materials 937
Deduction for Costs from Discrimination Suits 938
Section 199A Deduction – 20% deduction for Qualified Business Income 939
Early Attempts at Income Taxation 101
The Present Income Tax Law 102
Introduction – General Principles – Definitions 103
Classification of Taxpayers 104
Purpose of the Income Tax Return – Withholding and Estimated Tax 105
Accounting Period -The Taxable Year 106
Accounting Methods 107
The Cash Basis 108
The Accrual Basis 109
Change in Accounting Method 110
When to File the Income Tax Return 111
Penalties 112
Installment Payment of Tax 112A
Where and How To File Manual and Electronic Filing 113
Who Must File a Return 114
Joint Return of Husband & Wife 115
Separate Return of Husband & Wife 116
Who is considered as “Married”? 117
Special Provision for Married Persons Living Apart 118
Minors 119
The Tax Return Forms and Schedules 120
Payment of the Tax 121
Section II
Introduction 122
Gross Income 123
Deductions from Gross Income 124
Adjusted Gross Income 125
Deductions from Adjusted Gross Income 126
Taxable Income 127
Tax Credits 128
The Filing Requirements for Special Taxpayers 129