deducting pet expenses on tax return (2024)

A radio show host demonstrated that he could talk as well in tax court as he could in front of a microphone. At issue was the question of whether or not a person can be an employee as well as an independent contractor simultaneously with the same employer.

During 2007, Juan A. Ramirez was employed by Univision as an on-air talent and program director for radio station KXTN in San Antonio, Texas. In addition, to hosting a five-hour, six days a week radio program, his contract also called for him to perform various other duties.

These duties included working as an announcer at the radio station, attending staff meetings, and promoting the station in general by making off air appearances. For those services, Mr. Ramirez received a base salary, bonuses and stock options in Univision, the parent company of KXTN. Ramirez’s employment agreement stated that his work was subject to the control of Univision and that he was to live up to Univision’s professional standards in all aspects.

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The Tax Court in Brief

Freeman Law’s “The Tax Court in Brief” covers every substantive Tax Court opinion, providing a weekly brief of its decisions in clear, concise prose.

For a link to our podcast covering the Tax Court in Brief, downloadhereor check out other episodes ofThe Freeman Law Project.

The Week of January 18 – January 22, 2021

Adams Challenge (UK) Limited v. Comm’r, 156 T.C. No. 2, January 21, 2021 | Lauber, J. | Dkt. No. 4816-15

Short Summary:The case discusses whether under Section 882(c)(2) of the Code, a foreign corporation is entitled to the benefits of deductions or credits after the IRS has prepared returns for such corporation. The case also discusses whether the application of Section 882(c)(2) violates provisions of the tax treaty between the U.S. and the U.K., specifically those related to business profits and nondiscrimination.

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On December 21^st of 2018, the Internal Revenue Service (hereinafter the “Service”) issued new administrative guidance in the form of Rev. Proc. 2019-08 governing expense deductions and depreciation measures in connection to real property as enacted by the 2017 Tax Cuts and Jobs Act, Pub. L. No. 115-97, (hereinafter the “TCJA”’). It should be duly recalled, the TCJA enacted the subsequent tax law amendments including, but not limited to:

• I. R.C. § 179 by modifying the definition of “Qualified Real Property” that may be eligible as I.R.C. § 179 property pursuant to I.R.C. § 179(d)(1);
• I. R.C. § 168 by requiring certain property held by an electing real property trade or business and reducing the recovery period under the Alternative Depreciation System (hereinafter “ADS”) from 40 years to 30 years for commercial residential real estate property; and
• I. R.C. § 168 by requiring certain property held by an electing farming business to be depreciated under the ADS.

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Sometimes, you have to move because of a change in your job or business location. Or, maybe it’s because you start a new job or business. The IRS allows you to take a mileage deduction on your taxes for these moves. Let’s take a look at deducting moving expenses on your tax returns and the moving expense deduction rules.

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If you drive your personal car or rental car outside of your tax home for business, deducting travel mileage can be available to you. Let’s walk through the process for business travel expense deductions including car rentals, mileage and entertainment expenses.

Click Here For Free MileIQ App For Tax Professionals

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You may claim as an itemized deduction, any charitable contributions of money or property you made to qualified charitable organizations. Generally, you may deduct charitable contributions of up to 50% of your adjusted gross income, but 20% and 30% limitations may apply in some cases. You may deduct a charitable contribution made to, or for the use of, any organization that is qualified under the Internal Revenue Code.

Defining Charitable Organizations

A qualified charitable organization is a nonprofit organization that qualifies for tax-exempt status according to the U.S. Treasury. Qualified charitable organizations must be operated exclusively for religious, charitable, scientific, literary or educational purposes, or for the prevention of cruelty to animals or children, or the development of amateur sports. Read More

Opinion

Short Summary:

• This case involves disallowance of itemized business expense deductions claimed by Mark Ryan Pedersen for the 2016 tax year. Pedersen resided in Oregon and worked as a project manager at JE Dunn Construction Co. He was assigned to oversee JE Dunn project sites. In 2016 JE Dunn asked Pedersen to oversee projects in California. Pedersen incurred what he claimed were employee business expenses incurred during travel between cities in California and his then-current residence in Oregon. On his tax return, he reported wages of $96,265 from Form W–2, showing earnings in both Oregon and California, offset in part by miscellaneous itemized deductions of $31,638 claimed onSchedule A, Itemized Deductions. He attached aForm 2106–EZ, Unreimbursed Employee Business Expenses, reporting unreimbursed employee business expenses of $24,201 claimed as Schedule A miscellaneous deductions – vehicle expenses, parking fees, tolls and transportation expenses (collectively, transportation expenses), travel expenses while away from home overnight, and meals and entertainment expenses. In preparation for trial, Pedersen prepared a log or schedule of expenses in each category. He did not explain the specific business purpose for any of the expenses, and he produced nothing to show the terms of employment that he claimed required that he travel to California for work. The IRS disallowed the deductions. Pedersen asked the Tax Court to review that determination.

Key Issues:

• Whether Pedersen petitioner is entitled to a deduction for unreimbursed employee business expenses for tax year 2016?

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If you drive your car or other vehicle for business purposes, you can take a mileage deduction of 53.5 cents for every mile you drive for work in 2017 (54 cents per mile for 2016). Here is everything you need to know in order to get the most out of your mileage write off.

What Drives Are Business Drives?

With the mileage deduction, the IRS only lets you deduct trips that are for business. The natural question is: What types of trips are considered business drives? We’ve put together this simple chart to let you know what drives are considered business by the IRS:

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Self-employment has its perks: managing your own time. Only being responsible to your clients and yourself (no middle management – Wahoo!). Being able to sing at the top of your lungs while you work. But one of the downfalls comes around the middle of April every year: taxes.

Working for yourself means you are responsible for your taxes. There’s no employer deducting from your wages as you go. Thus, it’s up to you to keep track of your earnings, and very importantly, understand what you can and cannot write off as a deduction.

Knowing what you can and cannot write off gets tricky, fast. Here are a few basics to get you started: Read More