Tax Research Memo June 17, 2013 Judys Taxplace Federal Tax Research

Judys Taxplace Alpharetta, GA June 17, 2013 Relevant acts

!pec"#"c $ssues

%onclus"ons

!upport 1& A working condition fringe benefit is any property or service provided to you by your employer for which you could deduct the cost as an employee business expense if you had paid for it. If the professor continues in this path , this will be considered unethical practice as can be seen in the definition of travel expenses.

For tax purposes, travel expenses are the ordinary and necessary expenses of traveling away from home for your business, profession, or job. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your business. An expense does not have to be required to be considered necessary.

'er the $R! re(ulat"ons any travel pr"mar"ly #or personal reason If you travel
outside the nited !tates primarily for vacation or for investment purposes, the entire cost of the trip is a nondeductible personal expense. If you spend some time attending brief professional seminars or a continuing education program, you can deduct your registration fees and other expenses you have that are directly related to your business.

IRS Publication 463: Travel, Entertainment, Gift, and Car Expen e !"#$$%,Internal Revenue Service
Example. "he university from which you graduated has a continuing education pro&ram for members of its alumni association. "his pro&ram consists of trips to various foreign countries where academic exercises and conferences are set up to acquaint individuals in most occupations with selected facilities in several regions of the world. #owever, none of the conferences are directed toward specific occupations or professions. It is up to each participant to seek out specialists and organi$ational settings appropriate to his or her occupational interests. "hree%hour sessions are held each day over a &%day period at each of the selected overseas facilities where participants can meet with individual practitioners. "hese sessions are composed of a variety of activities including workshops, mini%lectures, role playing, skill development, and exercises. 'rofessional conference directors schedule and conduct the sessions. 'articipants can choose those sessions they wish to attend. (ou can participate in this pro&ram since you are a member of the alumni association. (ou and your family take one of the trips. (ou spend about ) hours at each of the planned sessions. "he rest of the time you go touring and sightseeing with your family. "he trip lasts less than * week. (our travel expenses for the trip are not deductible since the trip was primaril' a vacation. #owever, registration fees and any other incidental expenses you have for the five planned sessions you attended that are directly related and beneficial to your business are deductible business expenses. "hese expenses should be specifically stated in your records to ensure proper allocation of your deductible business expenses.

Conventions

Act"ons to )e Ta*en ________ Discuss with client. Date discussed ________ ________ Prepare a memo or letter to the client ________ Explore other fact situations ________ Other action. Describe:___________________________

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Preparer ________

Reviewer ________

Partner ________