Amos is a computer consultant and his office is located in Orange, Ca. He and his wife Susan used their Lear Jet which they had purchased for 2Million, to travel to their timber farm in Oregon (10 trips) to their Tahiti property (2 trips) to computer symposia (5 trips) and to Park City Utah (8 trips). The timber farm is operated in business like fashion. Amos ans Susan nearly 2Million remodeling the Tahiti house and related property they travel to Tahiti twice a year stay there for several weeks each time. They travel to Park city to go skiing. The annual cost of operating the Lear jet including deprecation is $700,000.
On their tax return Amos and Susan deducted $700,000 as a business expenses under section162. An IRS agent countered that this expense was not ordinary and necessary or that it was a personal expense. Therefore, she disallowed the deduction. Evaluate the position taken by Amos and Susan and suggest your advice for their meeting with the IRS.
Thank you for selecting the OTAs at BrainMass to assist you. Below is a FULL draft of your assignment and you should now have the tools to do great. Please be advised that the text of this work may be copy-protected©, but may be used as a good comprehensive sample or guide to aid you in customizing your work. Multiple links have been provided to assist you. Please be sure to cite the references listed herein.
I hope that you are happy with my dedication to your important work. Thanks and Good luck!
NOTE [As stated on Brainmass.com]: "We cannot do assignments for students. If it appears that this is what is requested, Postings may be Suspended."
Section 162 ordinary and necessary
Amos is a computer consultant and his office is located in orange, Ca. He and his wife Susan used their Lear Jet which they had purchased for 2Million, to:
* travel to their timber farm in Oregon (10 trips) -- operated in business like fashion
* to their Tahiti property (2 ...
Details the laws the IRS is citing to disallow Amos and Susan's claims and provides advice on how to best address the government agency's concerns.