Eaton, LLP owns severat apartment complexes and office buildings. The leasing an
ID: 2561427 • Letter: E
Question
Eaton, LLP owns severat apartment complexes and office buildings. The leasing and management of these buildings consitutes Eatons ony business activity During the current year Eaton incurred the folowing Click the kon to view the expenses icurred) Read the tequements Requirement a. What is the total amount Eaton may deduct because of these expenditures? Eaton may deduct O A none of the expenses listed because they were all incumed to infiuence legisltation. B. only the cost of the baoard. travel expenses tr the tng, t the state captal, and the cost of the presentator. The re nander orthe e pend tures were neumed to ntuence legisiaton c. the cost of travel expenses to te state capital, plus 100% of tho cost of a. other expenses under the do mining extepbon O D. only the cost of making the presentation before a local counci which was dealing with legislation that was of direct interest to Eaton's business. (Enter a "o if none of he expenses are deductible ) Eaton's total deduction because of these expendirures in this case is Requirement b. Assume all the same facts as in Part a except that the expenses tor the trip to the state capital are only $200 instead of s600 wnat amount may Eaton deduct because of these expenditures? Eaton may deduct A- the cost or making the presentation, plus 100% of the cost of all other expenses under the de minmis excepton O B. none of the expenses listed because they were at incurred to influence legisiation O C. only the cost of the baboard, travel expenses for the trip to the state capital, and the cost of the presentation. The remainder of the expenditures were incurmed to infhuence egislation only the cost of making the presentation before a local council which was dealing with legislation that was of dret nerest to Eatons business. D. Enter a "o" fnone of the expenses are dedutsble ) Eaton's total deduction because of these expenditures in this caseis -.Explanation / Answer
a) 0 None of the expenses are deductible - Refer below notes.
Travel Expenses - Eaton can deduct travel expenses along with meals and lodging expenses paid or incurred in connection with a temporary work assignment away from home. However, it can't deduct travel expenses paid in connection with an indefinite work assignment. - Hence not Eligible for Deductions
Expenses incurred for Tax appeal: Any cost associated with the appeal and protest are not deductible - Hence Not Eligible for Deductions
Subscription to political Newsletter : Any donors (individuals or company) cannot deduct the contributions made to a political candidate, a campaign, or a news letter fund and subscription to political newsletter or write of their federal income taxes.
Lobbying Expenses: Any individuals or company cannot deduct amounts paid or incurred for lobbying expenses like influencing Legislation, Participate or intervene in political campaign, or against and candidates or public office, attempt to influence general public, attempt to influence the official actions or positions of those officials.
b) 0 None of the expenses are deductible - Refer below notes.
Travel Expenses - Eaton can deduct travel expenses along with meals and lodging expenses paid or incurred in connection with a temporary work assignment away from home. However, it can't deduct travel expenses paid in connection with an indefinite work assignment. - Hence not Eligible for Deductions
Expenses incurred for Tax appeal: Any cost associated with the appeal and protest are not deductible - Hence Not Eligible for Deductions
Subscription to political Newsletter : Any donors (individuals or company) cannot deduct the contributions made to a political candidate, a campaign, or a news letter fund and subscription to political newsletter or write of their federal income taxes.
Lobbying Expenses: Any individuals or company cannot deduct amounts paid or incurred for lobbying expenses like influencing Legislation, Participate or intervene in political campaign, or against and candidates or public office, attempt to influence general public, attempt to influence the official actions or positions of those officials.
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