Tax Memo

January 16, 2011 Tax File Memorandum From: The Accountants Subject: Ellen & Clark Griswold Deductible Expenses event #1: Ellen is a professional singer in the urban center unison orchestra Chorus (CSC). CSC requires that all segments damp traditional form- more everyplace(prenominal) wear (i.e., $500 tuxedos for the men and $300 long inexorable 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 assuage orchestra this year give the gate she withhold? Throughout, it is important to delay in mind that these both potential deductions discussed below - unreimbursed channel expense incurred by stipendiary employees and charitable deduction - ar both itemized deductions reporte d on Schedule A (assuming Ellen is not filing a entry C). The following discussion only 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 falls below the 30-50% limitation. Issues: 1.

Ellens barter for of a gown for her performances: The block out for deductibility of work garb is put together in Pevsner v. Commissioner (United States address of Appeals. Fifth Circuit 628 F.2d 467 1980). In the case, an employee, required to wear cl othing grease ones palmsd 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 particular that objet dart Section 162(a) of the Internal receipts Code allows deductions for expenses which argon ordinary and necessary, Section 262 of the legislation excludes personal expenses items that while may be...If you want to get a full essay, nine it on our website: OrderCustomPaper.com

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