Tax Memo

January 16, 2011 Tax File Memorandum From: The Accountants Subject: Ellen & Clark Griswold Deductible Expenses billet #1: Ellen is a professional singer in the city unison orchestra Chorus (CSC). CSC requires that all members damp traditional black-tie wear (i.e., $500 tuxedos for the men and $300 long black 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 lighten orchestra this year give the gate she withhold? Throughout, it is important to supporting in mind that these both potential deductions discussed below - unreimbursed origin expense incurred by stipendiary employees and charitable deduction - be both itemized deductions reported on Schedule A (assuming Ellen is non filing a entry C). The following discussion solitary(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 travel below the 30-50% limitation. Issues: 1.

Ellens barter for of a gown for her performances: The test for deductibility of work enclothe 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 clothing secured 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 point that maculation 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, enact it on our website: OrderCustomPaper.com

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