Premium Essay

Dee Bater Hypo

In:

Submitted By tm27339
Words 1536
Pages 7
Case: Case Study 3, Trade or Business Deductions Facts: Dee Bater, a calendar year taxpayer, has a very successful law practice. On January 1, 2012 she purchased a country club membership which she uses partly for professional purposes. An analysis of her bills for 2011 shows her use of the club for the year to be as follows: Dinner with husband and family with purchase of drinks for any clients who happen to be present at the club, $240 Golf with present clients which was preceded or followed by a business discussion, $650 Golf with present clients during which some business was discussed, $200 Lunch with prospective clients during which some business was discussed, $470 Personal use of club facilities, $460 Lunch with prospective clients, on days when the Bater family used the club swimming pool, during which some business was discussed, $250 Lunch with present clients in order to discuss business $700 Luncheon with other attorneys to negotiate various matters pertaining to client affairs during which some business was discussed $400 Dinner with client attended by Dee Bater's husband and client's wife during which some business was discussed $200 Parties were given for current and prospective clients. The guest list included 50-100 people and Bater's employees were asked to attend and mingle $4,500 Yearly club dues were $3,000. Issue (1): Are the $3,000 club dues deductible? Law: IRC §162(a) Trade or business expenses: There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business
IRC §274(a)(1)(A) Disallowance of certain entertainment, etc., expenses: Denial of deduction for club dues. Notwithstanding the preceding provisions of

Similar Documents

Free Essay

Test2

...62118 0/nm 1/n1 2/nm 3/nm 4/nm 5/nm 6/nm 7/nm 8/nm 9/nm 1990s 0th/pt 1st/p 1th/tc 2nd/p 2th/tc 3rd/p 3th/tc 4th/pt 5th/pt 6th/pt 7th/pt 8th/pt 9th/pt 0s/pt a A AA AAA Aachen/M aardvark/SM Aaren/M Aarhus/M Aarika/M Aaron/M AB aback abacus/SM abaft Abagael/M Abagail/M abalone/SM abandoner/M abandon/LGDRS abandonment/SM abase/LGDSR abasement/S abaser/M abashed/UY abashment/MS abash/SDLG abate/DSRLG abated/U abatement/MS abater/M abattoir/SM Abba/M Abbe/M abbé/S abbess/SM Abbey/M abbey/MS Abbie/M Abbi/M Abbot/M abbot/MS Abbott/M abbr abbrev abbreviated/UA abbreviates/A abbreviate/XDSNG abbreviating/A abbreviation/M Abbye/M Abby/M ABC/M Abdel/M abdicate/NGDSX abdication/M abdomen/SM abdominal/YS abduct/DGS abduction/SM abductor/SM Abdul/M ab/DY abeam Abelard/M Abel/M Abelson/M Abe/M Aberdeen/M Abernathy/M aberrant/YS aberrational aberration/SM abet/S abetted abetting abettor/SM Abeu/M abeyance/MS abeyant Abey/M abhorred abhorrence/MS abhorrent/Y abhorrer/M abhorring abhor/S abidance/MS abide/JGSR abider/M abiding/Y Abidjan/M Abie/M Abigael/M Abigail/M Abigale/M Abilene/M ability/IMES abjection/MS abjectness/SM abject/SGPDY abjuration/SM abjuratory abjurer/M abjure/ZGSRD ablate/VGNSDX ablation/M ablative/SY ablaze abler/E ables/E ablest able/U abloom ablution/MS Ab/M ABM/S abnegate/NGSDX abnegation/M Abner/M abnormality/SM abnormal/SY aboard ...

Words: 113589 - Pages: 455