5) You believe that your consulting income will be high this year. Further, you

Question

5) You believe that your consulting income will be high this year. Further, you expect that tax rates will stay the same this year and next; so you are looking for ways to accelerate deductions into this year. There is a conference in Hawaii on marketing techniques which will be useful for your business. You decide that you should take your wife and family so that you can deduct the airfare, hotels, and meals/entertainment on your taxes. Identify which doctrine the IRS would likely attack on you, and explain how that doctrine might be applied

Explanation / Answer

The doctrine which the IRS can use to attack is that we have to prove that the trip is "necessary and ordinary" in the course of business.

Since the traveling of wife and family is neither necessary or ordinary in the course of business, the deductions won't be allowed. Also for it to qualify as a business expense, the majority of the time should be spent in discussing business matters which would not be the case if the family is traveling, so this trip won't be allowed by IRS fr tax deductions.

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