Asshish is a medical doctor and a scientist. He works at a local hospital in the mornings, attending to patients.At lunchtime he takes a train to the local university where he works in a research laboratory. At the end of theday, he takes the train home.Advise Asshish as to the tax deductibility of the train fares.O The train fare from the university to his home will not be deductible as it is a private or domestic expenseO The train fare from the university to his home will be deductible as it is necessary to put him in a position to earn theincomeO The train fare from the university to his home will not be deductible as it is a fringe benefit taxO The train fare from the university to his home will be deductible as it is directly connected to his income exertion

As per the Income Tax Rules Only those expenses will be claimed as a reduction from income which is…

Asshish is a medical doctor and a scientist. He works at a local hospital in the mornings, attending to patients. At lunchtime he takes a train to the local university where he works in a research laboratory. At the end of the day, he takes the train home. Advise Asshish as to the tax deductibility of the train fares.

Asshish is a medical doctor and a scientist. He works at a local hospital in the mornings, attending to patients. At lunchtime he takes a train to the local university where he works in a research laboratory. At the end of the day, he takes the train home. Advise Asshish as to the tax deductibility of the train fares.

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter6: Deductions And Losses: In General

Section: Chapter Questions

Problem 40P

See similar textbooks

Similar questions

Jeremy received a tax refund check and needs to have it deposited into his account. He decided to ask his friend JT to do that for him. What does Jeremy need to write on the back of the check to make sure that JT doesn't cash the check for himself?
Juan, a self-employed medical doctor, maintains an office in his home where he maintains patient records and performs billing procedures. Most of his time is spent visiting patients and performing surgical procedures in the operating room at several local hospitals. Juan in-tends to deduct his expenses of his office in his home. What tax issues should Juan consider?
T uses frequent flyer miles to take his family on a vacation. T received the miles duringbusiness travel paid for by his employer. The normal airfare for his vacation wouldhave cost $7,000.a. T must realize and recognize $7,000 as income.b. Although T has realized income, he will not be required to recognize it becausethe IRS has chosen, as a matter of administrative convenience, not to requiretaxpayers to recognize the value of frequent flyer tickets earned duringemployer-paid travel.c. Had T earned the frequent flyer miles during travel he had paid for himself, theissue of income realization and recognition would not arise.d. Both (a) and (c) are correct.e. Both (b) and (c) are correct. T buys a parcel of real estate for $100,000, which he finances by giving the seller a nonrecoursemortgage for the full purchase price. The debt is due in one balloon payment inYear 5. When the debt becomes due in Year 5, T decides to give the property back to theseller in satisfaction of the debt…
Enzo recently used his United SkyMiles to purchase a free round-trip ticket to Dublin, Ireland (value $1,500). The frequent flyer miles used to purchase the ticket were generated from Enzo's business travel as a CPA. Enzo's employer paid for his business trips, and he was not taxed on the travel reimbursement. a) Use an available tax research service to determine how much income, if any, Enzo will have to recognize as a result of purchasing an airline ticket with Skymiles earned from business travel. b) Write a memo communicating the results of your research.
A taxpayer is single and cannot be claimed by anyone as a dependent. He is a full-time law student at a local university. His tuition bill was $8,000. He paid the bill by withdrawing $2,000 from his savings account and borrowing the remainder from a local bank. For purposes of the education tax credits, what is the amount of his qualifying expenses? To maximize his education tax credit, identify the credit and amount that he should claim. (Show your calculations for partial credit review.)
Jamie has an undergraduate degree in finance and is employed full-time by a bank. She is taking courses at a local university leading to an MBA degree. Is the full cost of this education deductible to her? If so, what limitations are imposed on the deduction?
Mansi, a self-employed influencer, left her home in Georgia on Monday to fly to New York to meet with another influencer to discuss a "collab". She returned the next day. Her expenses are as follows: Airfare $500, lunch in New York at a restaurant with influencer $100, Taxi $50. How much can Mansi deduct? (Do not use commas or dollar signs. Round to the nearest dollar.)
Lawyer is a cash basis taxpayer. The client calls Lawyer at 4.00 PM, December 31, 2022, saying she has Lawyer’s fee statement, has made out a check in full payment and, as she is about to leave for Europe, and she will leave the check with a desk clerk at Client’s apartment. Lawyer is ill, has no one to send to pick up the check, and he finally arranges to pick it up on January 2, 2023. In what year will the income from this transaction be recognized for tax purposes under cash method? Cite specific tax code/tax law in your response.
Does the taxpayer recognize gross income in the following situations? a. Ava is a filing clerk at a large insurance company. She is permitted to leave the premises for lunch, but she usually eats in the company's cafeteria because it is quick and she is on a tight schedule. On average, she pays $2 for a lunch that would cost $12 at a restaurant and it cost her employer $10 to prepare. However, if the prices in the cafeteria were not so low and the food was not so delicious, she would probably bring her lunch at a cost of $3 per day. Ava's meals are provided as . Therefore, Ava would include $fill in the blank 08654900eff8078_2 per meal in her gross income. b. Scott is an executive for an international corporation located in New York City. Often he works late, taking telephone calls from the company's European branch. Scott often stays in a company-owned condominium when he has a late-night work session. The condominium is across the street from the company office and…
Mario is engaged in a pharmaceutical business. One day, Mario unnecessarily bought from Dario a truckload of supplies and medicines to be sold in his pharmacy so that he could post the cost in his ledger as expense to reduce his tax liability. Is the contract of sale between Mario and Dario valid? Why or why not? 2. Joanna entered into a loan contract with Marie over Marie’s car where Joanna is the borrower and Marie is the lender. It was stated in the contract that the ownership will be transferred to Joanna. The title to the car was given to Joanna who registered the car in her name. Before the end date of the contract, Joanna expressed her intention to buy the car. But Marie refused to agree to Joanna’s intent. Was Marie correct in refusing to agree to Joanna’s intent? Why or why not? 3. Scott requested Jenny to work with the Bureau of Internal Revenue (BIR) in further reducing the tax liability of the company believing her to be an accountant. Meanwhile, Jenny took advantage of…
Jessica is a professional consultant. She agrees to consulting services for Joe for $2,000. After she finishes, Joe does not have cash to pay Jessica, but he has an antique, collectible baseball card with a fair market value of $2,000 that he gives her to satisfy the payment. The baseball card cost Joe $500. How much should Jessica include in her gross income?