TAXPAYER CLAIMS HE IS A WRITER…
A taxpayer was unable to prove his business deduction as a legitimate expense. In 2006-2007 the taxpayer claimed his trips abroad were to take photographs for a book on world travel. He deducted $20,000 for costs associated with his travels to Africa, Australia, Asia and South America. He claimed he was a writer, but in 2011 he still had failed to publish anything – and the book was still in rough form. It was decided that even though he had a business plan, and a profit motive, he failed to produce evidence that he was in a trade or business of being an author. (¹Oros v. Comm. (December 31, 2013) US Court of Appeals for the Ninth District, Case No. 12-71071)
MBA TUITION DEDUCTION DENIED
Husband and wife were denied a major deduction of $17,138 for the husband’s MBA tuition expenses. Why? Because they could not provide evidence that the schooling was required for his employment. Education expenses may be deducted if the education:
- Maintains or improves skills required by the individual’s employment; or
- It meets the requirements of the individual’s employer or the law, as a condition of employment.
Source of content : Spidell’s Elder Client Care Planner , March 2014
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