Sheri is an attorney who operates as a sole practitioner. Despite her busy schedule, in the past, Sheri found time for her family. This year Sheri took on two new important clients, and she hired a personal assistant to help her manage her schedule and make timely court filings. Occasionally, Sheri asked her assistant to assist her with personal tasks such as having her car serviced or buying groceries.

1. Do you think that Sheri should treat her assistant's entire salary as a business expense? Provide your rationale supported by tax law.

2. Would your answer be any different if personal assistants were to commonly perform these tasks for other busy professionals, such as corporate executives and accountants? Again, provide your rationale supported by tax law.

3. How would the cost of a personal assistant differ from the cost of having groceries delivered from a tax perspective? 

Answer rating: 100% (QA)

Answer 1 Sheri should treat her assistants entire salary as a business expense if the assistants primary duties are related to Sheris legal practice A... View the full answer