Tax Memo

January 16, 2011 Tax File Memorandum From: The Accountants Subject: Ellen & Clark Griswold Deductible Expenses built in bed #1: Ellen is a professional singer in the city unison orchestra Chorus (CSC). CSC requires that all instalments damp traditional dinner dress wear (i.e., $500 tuxedos for the men and $300 long opaque gowns for the women) during performances. In addition, because of her annual $15,000 contribution to the CSC patron drive, Ellen is a member of the symphonys board of directors. The board chooses the works to be performed, sites for the concerts and the house physician conductor. How much of Ellens $15,300 expenditures on behalf of the disembarrass orchestra this year give the gate she withhold? Throughout, it is important to slip by in mind that these both potential deductions discussed below - unreimbursed short letter expense incurred by stipendiary employees and charitable deduction - atomic number 18 both itemized deductions repo rted on Schedule A (assuming Ellen is non filing a entry C). The following discussion lone(prenominal) has significance assuming that Ellen (and her hubby if filing jointly) opts to itemize everywhere taking the standard deduction, as well as passes the 2% AGI miscellaneous expense hurdle and her charitable contribution go below the 30-50% limitation. Issues: 1.

Ellens barter for of a gown for her performances: The evidence for deductibility of work clothes is put together in Pevsner v. Commissioner (United States approach of Appeals. Fifth Circuit 628 F.2d 467 1980). In the case, an employ ee, required to wear clothing buyd from th! e store in which she worked, sought to deduct the clothing purchase and maintenance costs as business expenses. The employee testified that the clothing was non something she wore outside of work situations. The decision make reference to the accompaniment that age Section 162(a) of the Internal receipts Code allows deductions for expenses which are ordinary and necessary, Section 262 of the legislation excludes personal expenses items that while may be...If you want to get a full essay, prescribe it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper