TAX RESEARCH ASSIGMENT 3 5
TaxResearch Assignment 3
DearJoe Bon Joni
Imust confessthatI am indeedenjoyingworkingwith yousince youare an understandingandoutgoingclient.Iam delightedat thefactthatyouhavechosenme to be your advisor regardingthetaxtreatmentof theclothesthat youusedduring your concerts.
Myresearchis in linewith theinformationthatyouprovidedme, which is as follows.Youare a self-employed rockstarwhoseworkis to entertainyour fansandfollowersin variousareas.Youwentaheadto stateto youare a lawabidingcitizenwhoalwaysensuresthatyour taxesare paidpromptlyas requiredby thefederallaw.In 2013, youspenta sum of $10,000 on ‘flashy’clothesandoutfitsforthesakeof your rockconcerts. Youfurthersaidthatyouconsidereddeductingthecostof theseclothesas work-related since theclothesin questionare not acceptableforyour senseof fashion.Yourconcernsurroundstheideathatyouwantedtoknowthecircumstancesthatcan enable you todeductthecostof theclothesin question.
Aftera detailedandinformedreviewof applicabletaxauthority,there is a credibleauthoritythat permitsthedecisionthatyouare considering.It is provided by the tax law of IRC secs. 162, 274 under business,entertainment & trade expenses thatthe costof workclothesas wellas uniformscould be deductedby you. The reasons for this deduction are in line with the two conditionsspelt out in the publication. The clothes that you bought are a mustfor your performances and that you cannot where them on a normal daysince they do not fit in your fashion appeal. Fishman et al. (2014)clothesreferto allattires usedby labour in thefactoriesas wellas uniqueclothesusedby peopleworkingin industrieslike yours.
Thefactsin Pevsner and CommissionerNo. 80-1096, Summary Calendar, UNITED STATES COURT OF APPEALS FOR THEFIFTH CIRCUIT. UNIT A, 628 F.2d 467 1980 U.S. App. LEXIS 13014 80-2U.S. Tax Case. (CCH) P9732 46 A.F.T.R.2d (RIA) 5938, October20,1980, which was a case heard and determined in the court of appealgives a view of how your case can be determined. This was a casewhere the appellant commissioner sought to challenge the ruling ofthe US Tax Court. The court had decided that the clothes in questionwere to be subjected to a deduction. The Appellee taxpayer wasemployed as a manager in a women’s fashion shop where she wassupposed to wear expensive clothes while on the job. The Court ofAppeal nullified and reversed this decision by arguing that despitethe fact that the appellee did not wear such clothes away from workdue to her lifestyle she was not entitled to such a deduction sinceshe was free to where them from elsewhere if she felt so. The abovecase can be compared to your situation to imply that you are entitledto a deduction since you cannot where such clothes away from theconcerts.
It,therefore,meansthatyouare entitledto a deductionsince there is a substantial legal ground to support your decision.Rememberthatyouonlyusedtheseclothesduring a seriesof concerts to youheldacross variousplacesthatyouwerecalledupon to entertain.Theotherfactis thatyouare deeplyawarethatyour fashiontastedoesnot allowyouto puton suchclothesunder normalcircumstances.Justlike a factoryandotheruniformed workers,there waseveryreasonforyouto puton clothesthat appealto your customersduring your concerts.
Iamextremelyimpressedby thefactthatyouhavetakenthenecessaryinitiativeby seekinglegaladviceover your taxobligations.Like Imentionedbefore,I amindeedamazedby cooperationandjustifiedsearchforlegalassistanceto your concerns.Feelfreeto putthecostof thoseclothesin thework-related categorysince theyare costumeslike thoseusedby otherprofessionalselsewhere.Iwill be willingandreadyto assistyouwherenecessary.Donot hesitateto comeoverwhenever youneedadditionalinformationover thisoranyotherissues.Thanksa lotandbe blessedin allyourendeavors.
Fishman,S., & EBSCO Publishing (Firm). (2014). Taxdeductions for professionals.