Taxation Dissertation Example

Free Taxation Dissertation Example

Taxation: Allowable and Disallowable Expenses Name Institutional Affiliation Abstract The paper is primarily focused on the two pertinent issues that face taxpayers in the daily routines in filing for their returns. The topics discussed are the allowable and the disallowable expenditures for and against taxation. An elaboration has also been affixed as to why some expenses are disallowed. The deductible expenses in the problem include real estate taxes, prescriptions, charitable donations in the form of cash, personal property taxes, mortgage interests, withheld incomes, contact lenses, and unreimbursed medical expenses. The disallowable deductions included the reimbursed health insurance premiums and the services to a qualified nonprofit organization. The guidelines to the classification of the expenses were derived from the Internal Revenue Service (IRS). Keywords: Allowable expenses, Disallowable expenses, IRS. Taxation: Allowable and Disallowable Expenses For taxation, expenses are categorized as either allowable or disallowable. Allowable expenditures against tax are defined as the expenses incurred “wholly and exclusively” to generate business income (IRS, 2017). The expenses are only deductible if they were incurred while transacting for the business or trying to woe customers. For the individual persons, the following expenses are allowed in the form 1040 Schedule A: a) Real estate taxes b) Prescriptions c) Cash charitable donations and gifts d) Personal property taxes e) Mortgage interests f) Withheld state incomes taxes g) Contact lenses h) Medical expenses unreimbursed Disallowed Expenses Disallowable expenses or deductions for taxation in Form 1040 schedule A are expenses not wholly and exclusively for business purposes (IRS, 2017). The disallowable expenses for this matter are: a) Reimbursed health insurance premiums. b) Services provided to a non-profit organization. Reimbursed Health Insuran...