Question amos is a computer consultant and his office is

Assignment Help Financial Accounting

Reference no: EM13349593

Question :

Amos is a computer consultant, and his office is situated in Orange, California. He and his wife, Susan, used their Lear jet, which they had bought for $2 million, to travel to their timber farm in Oregon (10 trips), to their Tahiti property (2 trips), to computer symposia 5 trips, and to Park City, Utah (8 trips). The timber farm is performed in a businesslike fashion. Susan and Amos have spent nearly $2 million remodeling the Tahiti house and related property. They travel to Tahiti twice a time and stay there for quite a few weeks each time. They travel to Park City to go skiing. The annual costs of working the Lear jet, adding depreciation, are $700,000 (suppose $200,000 of this is depreciation).

On their tax return, Susan and Amos deducted the $700,000 as a business expense under §162. An IRS agent countered that this expense was not ordinary and required or that it was personal expense. Thus, she disallowed the deduction. Determine the positions taken by Amos and Susan and by the IRS agent with respect to the Lear jet deduction.

Reference no: EM13349593

Questions Cloud

Question 1a what is the sustainable developmentb examine : question 1a what is the sustainable development?b examine the principles of sustainable development.question 2a

Question 1product development costs are a material cost for : question 1product development costs are a material cost for various companies. they are either written off as a

Question consider that next year research in motion sells : question consider that next year research in motion sells off its interest in tip communications one of its

Question 1 there is no magic method for entrepreneurship : question 1 there is no magic method for entrepreneurship. though there are numerous different and successful approaches

Question amos is a computer consultant and his office is : question amos is a computer consultant and his office is situated in orange california. he and his wife susan used

Question 1a number of years ago lee acquired a 20 percent : question 1a number of years ago lee acquired a 20 percent interest in the bluesky partnership for 60000. the

Question 1a describe what you know by training education : question 1a describe what you know by training education and development.b training is considered as a vital tool

Question on 1st january 2013 the balance in kubera cos : question on 1st january 2013 the balance in kubera cos allowance for bad debts account was 1300. through the year a

Question 1a audiovisual production involves both : question 1a audiovisual production involves both imagination and technique. discussb there are basically five stages in

User Account

All Pages