Tax Memo

January 16, 2011 Tax File Memorandum From: The Accountants Subject: Ellen & Clark Griswold Deductible Expenses authority #1: Ellen is a professional singer in the urban center unison orchestra Chorus (CSC). CSC requires that all instalments damp traditional sieveicle wear (i.e., $500 tuxedos for the men and $300 long cutting 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 explain orchestra this year give the gate she withhold? Throughout, it is important to accompaniment in mind that these both potential deductions discussed below - unreimbursed rail line expense incurred by stipendiary employees and charitable deduction - atomic number 18 both itemized deductions r eported on Schedule A (assuming Ellen is not filing a entry C). The following discussion completely has significance assuming that Ellen (and her hubby if filing jointly) opts to itemize over taking the standard deduction, as well as passes the 2% AGI miscellaneous expense hurdle and her charitable contribution travel below the 30-50% limitation. Issues: 1. Ellens barter for of a gown for her performances: The test for deductibility of work garments is put together in Pevsner v. Commissioner (United States salute of Appeals. Fifth Circuit 628 F.2d 467 1980). In the case, an employee, required to wear clothing leveraged from the store in which she worked, sought to deduct the clothing purchase and maintenance costs as business expenses. The employee testified that the clothing was not something she wore outside of work situations. The decision make reference to the position that temporary hookup Section 162(a) of the Internal receipts Code allows deductio ns for expenses which are ordinary and neces! sary, Section 262 of the legislation excludes personal expenses items that while may be...If you want to get a full essay, recite it on our website: OrderCustomPaper.com

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