Federal Income Tax Research Paper Example | Topics and Well Written Essays - 1000 words

Federal Income Tax - Research Paper Example The total expenditure by Mr. Zimblist could be overviewed by his expenses like extending the garage area for vintage auto collection, donating a large amount to a university and collecting a professional certification by his wife. $45,000 has been invested for the garage area inorder to display the vintage auto collection which is debatable because 60% of it was paid by the company. Mr. Zimblist has donated an income of about $ 25000 to the university is on his behalf. Finally Mrs. Zimblist certification in advanced motivational psychology offered by the organization was worth $ 12,300, this includes the cost of the overall courses, bo foroks and marks. Efran lives in a house that is provided by the company. It is not only in his personal use bu,t also the requirement of the company to set it as an office house inorder to comfort, entertain and leave a good impression on the clients. House maintenance and others are also taken care by the company. His garage serves the same business purpose.  §162(a) states that the taxpayer is allowed to deduct the ordinary and necessary expenses paid in carrying a trade or business. In contrast  §262 provides no deduction to be made for personal expenses. However,  §162(a) (2) and  §280A apply of many restrictions on the expenses made on personal resident being used as office.  § 280A(c)(1)(B) allows deduction for a home office if it is in use for patient, clients or customers and they make meeting and dealings. The Green v. Commissioner, 705 F. 2d 404 (9th Cir. 1983) also claims how important it is to understand the use of the resident as personal or office.