Question: Chang wants to claim a cost recovery deduction for the acquisition
Chang wants to claim a cost-recovery deduction for the acquisition of original artwork to be hung in the reception area of her dental office. The paintings were specially chosen because of their tendency to relax the patients who would be viewing them, thereby facilitating the conduct of Chang’s business. Chang lives and works in the Fifth Circuit. A recent Eleventh Circuit case seems to support such a deduction, in limited circumstances. Complete the following chart, indicating for each independent assumption the actions that Chang can take without incurring the civil penalty for substantial understatement of taxes, but still maximizing her legitimate deductions for the year.
Answer to relevant QuestionsThe rules that govern practice before the IRS are found in Circular 230. Discuss what entails practice before the IRS and state which section of Circular 230 contains the definition. A practitioner cannot give written advice under Circular 230 § 10.37 in which situations? What are the SSTS? Who issues them? Discuss their principal objectives. Your client, Lee Ann Harkness, has been accused of criminal tax fraud. A high-school dropout, she received hundreds of thousands of dollars over the years from Bentley, an elderly gentleman, in exchange for love and ...Tobey was late in filing his federal income tax refund claim, but he requested an extension of the statute of limitations, citing the financial-disability exceptions of I. R. C. § 6511(h). Tobey’s mother is chronically ...
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