If an individual purchases property insurance on business equipment, the premiums are deductible, but if that same

Question:

If an individual purchases property insurance on business equipment, the premiums are deductible, but if that same individual purchases property insurance on his home, the premiums are nondeductible. Can you explain this inconsistent tax treatment?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Principles Of Taxation For Business And Investment Planning 2016 Edition

ISBN: 9781259549250

19th Edition

Authors: Sally Jones, Shelley Rhoades Catanach

See More Books

Question Posted: Nov 03, 2015 05:43 AM

See More Questions

SnapOn makes snap-together button fasteners (a male top and female bottom) for designer clothes. Each top and bottom consists of several metal parts that, when attached to the garment, allow the...
After graduating from Eastern University in Campus Town, USA with a degree in business, Michael Woods realized that he wanted to remain in Campus Town. After a number of unsuccessful attempts at...
Individual Rehabilitation Services (IRS) is a not-for-profit organization that assists individuals returning to society following a substance abuse conviction. IRS has been greatly successful in its...
Given the following network, with the indicated flow capacities along each branch, determine the maximum flow from source node 1 to destination node 10 and the flow along eachpath: 15 5 10 7 16 12 0...
A blind taste test was used to determine peoples preference for the taste of the classic cola and the new cola. The results were as follows: 645 preferred the new 583 preferred the old 272 had no...
Polo Ralph Lauren Corporation designs, markets, and distributes a variety of apparel, home decor, accessory, and fragrance products. The company's products include such brands as Polo by Ralph...
How does one distinguish between negligence and malpractice?
On January 1, 20--, Dover Companys retained earnings accounts had the following balances: Appropriated for printing press........$ 50,000 Unappropriated retained earnings......800,000...
Luthan Company uses a plantwide predetermined overhead rate of $ 2 2 . 6 0 per direct labor - hour. This predetermined rate was based on a cost formula that estimated $ 2 7 1 , 2 0 0 of total...
Juarez Inc. had the following inventories on March 1: Finished Goods ........................... $15,000 Work in Process ........................... 19,070 Materials...
People frequently sell used appliances, old furniture and clothing, books, toys, and other personal goods through an online service such as Craigslist or eBay. Should these people recognize the cash...
Mr. Cox is a passionate stamp collector. His collection is so valuable that he keeps it in a safety deposit box in a local bank, which charges him $25 a month. Can he deduct this expense?
A study of quantitative variation for abdominal bristle number in female Drosophila yielded estimates of V T = 6.08, V g = 3.17, and V e = 2.91. What was the broad-sense heritability?
A $2.0-\mathrm{kg}$ cart and an $8.0-\mathrm{kg}$ cart are connected by a relaxed, horizontal spring of spring constant $300 \mathrm{~N} / \mathrm{m}$. You pull the $8.0-\mathrm{kg}$ cart...
A $2.34-\mathrm{kg}$ cart on a long, level, low-friction track is heading for a small electric fan at $0.23 \mathrm{~m} / \mathrm{s}$. The fan, which was initially off, is turned on. As the fan...
You are climbing a rope straight up toward the ceiling. (a) What are the magnitude and direction of the force you must exert on the rope in order to accelerate upward at \(1.5 \mathrm{~m} /...
If the force of gravity exerted by Earth on a fully suited astronaut at Earth's surface is $1960 \mathrm{~N}$, what is the magnitude of the gravitational force exerted on her $(a)$ on Jupiter,...
A $1500-\mathrm{kg}$ truck and a $1000-\mathrm{kg}$ car are parked with their rear bumpers nearly touching each other in a level parking lot. Both vehicles have their brakes off so that they are...
Meteorologists can determine the duration of a storm using the function where d is the diameter of the storm in miles and T is the time in hours. Find the duration of a storm with a diameter of 16...
You continue to work in the corporate office for a nationwide convenience store franchise that operates nearly 10,000 stores. The per- store daily customer count (i.e., the mean number of customers...
Brad owns a successful corporation that has substantial earnings and profits. During the year, the following payments were made by the corporation: a. Salary of $250,000 to Brad. Officers in other...
Explain the meaning of the term wherewithal to pay as it applies to taxation.
Stan rented an office building to Clay for $3,000 per month. On December 29, 2014, Stan received a deposit of $4,000 in addition to the first and last months rent. Occupancy began on January 2, 2015....
Show the adjusting entries that you would make given the additional data below. In addition to the formal journal entry, please also indicate the type of adjusting entry that is being made, ...
I need one to three paragraphs written about the awk command in unix. Everything should be in a power point presentation. Make sure it contains the following: Command name Description How to use the...
If a firm does not grow as expected subsequent to convertible or bond-with-warrant issues, does that make it more or less likely that the securities will be converted or exercised?

If an individual purchases property insurance on business equipment, the premiums are deductible, but if that same

Question:

Step by Step Answer:

The annual premium to carry insurance on business ...View the full answer

Principles Of Taxation For Business And Investment Planning 2016 Edition

Students also viewed these Business Law questions