For each of the following expenses identify and discuss the general requirement (s) (ordinary, necessary, related to business, etc.) upon which deductibility depends.

a.) A police officer who is required to carry a gun at all times lives in New York. The most convenient and direct route to work is through New Jersey. The laws of New Jersey, however, prohibit the carrying of a gun in the car. As a result, he must take an indirect route to the police station to avoid New Jersey. The indirect route causes him to drive ten miles more than he would otherwise. The cost of the additional mileage is $500. (Note: Commuting expense from one’s home to the first job site generally is a nondeductible personal expense.)

b.) The current president of a nationwide union spends $10,000 for costs related to reelection.

c.) The taxpayer operates a lumber business. He is extremely religious and consequently is deeply concerned over the business community’s social and moral responsibility to society. For this reason, he hires a minister to give him and his employees moral and spiritual advice. The minister has no business background although he does offer solutions to business problems.

d.) The taxpayer operates a laundry in New York City. He was recently visited by two “insurance agents” who wished to sell him a special bomb policy (i.e., if the taxpayer paid the insurance “premiums,” his business would not be bombed). The taxpayer paid the premiums of $500 each month.

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