Questions from Federal Taxation

Q: Why are expenses related to the production of tax-exempt income

Why are expenses related to the production of tax-exempt income not deductible?

Q: Explain the rationale for the treatment of deductions related to hobbies,

Explain the rationale for the treatment of deductions related to hobbies, vacation homes, and home offices.

Q: What is/are the requirement(s) for determining whether

What is/are the requirement(s) for determining whether a residence used for personal purposes is a vacation home or a true rental property?

Q: Under what circumstances can a taxpayer deduct the costs of a home

Under what circumstances can a taxpayer deduct the costs of a home office?

Q: What constitutes the payment of an expense by a cash basis taxpayer

What constitutes the payment of an expense by a cash basis taxpayer?

Q: What are the criteria for the current deduction of a prepaid expense

What are the criteria for the current deduction of a prepaid expense by a cash basis taxpayer?

Q: What tests must be met for an accrual basis taxpayer to deduct

What tests must be met for an accrual basis taxpayer to deduct an expense?

Q: All allowable deductions of individual taxpayers are classified as either for adjusted

All allowable deductions of individual taxpayers are classified as either for adjusted gross income or from adjusted gross income. Why are deductions for adjusted gross income usually more advantageo...

Q: Why does the computation of adjusted gross income apply only to individual

Why does the computation of adjusted gross income apply only to individual taxpayers and not to other tax entities such as corporations?

Q: What are the two primary categories of business expense? Why is

What are the two primary categories of business expense? Why is it necessary to classify business expenses in these two categories?