Question: Congress provides specific statutory rules authorizing deductions for trade and business. However, IRC Sec. 162, the provision authorizing business deductions is relatively broad. Address, the

Congress provides specific statutory rules authorizing deductions for trade and business. However, IRC Sec. 162, the provision authorizing business deductions is relatively broad. Address, the following broad requirements and limitations by providing specific examples on how to apply each: What is meant by ordinary, necessary, or reasonable tests. Give examples and explain? What is meant by deductions against public policy or other statutory limits. Give examples and explain the reasons for the limitations? What is meant by mixed-motive expenditures and why are they of particular concern to the IRS. Give examples to explain? Do you think that these broad based rules and limitations are too restrictive? Explain your reasoning

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a Introductory The purpose of the regulations in this section is to provide rules for the reporting of information on income tax returns by taxpayers who pay or incur ordinary and necessary business e... View full answer

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