The irs allows taxpayers sole proprietorship to deduct

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Reference no: EM13589980

The IRS allows taxpayers sole proprietorship to deduct certain expenses related to their business. Common examples include transportation costs, travel costs, educational expenses, professional dues, bad debts, and home office expenses. In this discussion, you will explore the rules and limitations associated with business expense deductions.

Please respond to all of the following prompts:

1. Compare and contrast the deductibility of travel expenses and meals and entertainment. Provide an example of expenses that are deductible and expenses that are not deductible for business purposes.

2. How might a business owner attempt to abuse the system and deduct expenses that the IRS would not allow? Provide an example.

3. Explain how the IRS could potentially detect taxpayer abuse in reporting Schedule C income.

Reference no: EM13589980

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