explain how transactions qualify as business expense deductions

Offered Price: $ 15.00 Posted on: 12/28/2015 10:36 PM Due on: 01/27/2016
Question # 00161733 Subject Finance Topic Finance Tutorials: 1
Question Purchase it

explain how transactions qualify as business expense deductions and provide examples. Based upon your knowledge of deductible business expenses and through research, address the following scenario as Mr. Gerbeuses tax advisor:

Mr. Bouteilles Gerbeuses has been your long-time tax client. He has amassed an impressive portfolio of real estate, securities, and joint venture investments. His net worth is substantial. Despite all his material well-being, Mr. Gerbeuses wants to take on a new challenge, that of producing fine wines.

He already owns several hundred acres of agriculturally zoned land in the wine producing region of the Noir Valley. It happens to adjoin his home in the Wemadeit Country Club and Retirement Resort subdivision. He expects his start-up capital investment to be over $5 million and does not expect the first harvest to take place for at least seven years after the initial planting of grape vines. He expects to offset any losses by his other income.

Assuming Mr. Gerbeuses comes to you for tax advice on his new wine venture, what tax advice will you provide, and what, if any, ethical issues should be considered? As you work to identify ethical concerns and applicable areas of taxation that Mr. Gerbeuses may require guidance and counsel in, consider the following ideas:

  • How will his entity choice impact both protection of assets and personal tax obligation?
  • What are the tax implications associated with employing family members (assuming he has other family members living and working on his large estate)?
  • What types of deductions/expenses might Mr. Gerbeuses be rightly entitled to; what types of deductions/expenses may provide opportunity for abuse?

Does placement of this personal property into business use present any tax benefits or consequences for the property owner?

Tutorials for this Question
  1. explain how transactions qualify as business expense deductions

    Available for: $ 15.00 Posted on: 12/28/2015 10:36 PM
    Tutorial # 00156273 Puchased By: 0
    Tutorial Preview
    rxgxlxtxxns xxxxxx bx xxxxxxxxxxx xn thx xxxx bxsxnxss 2 xxx prxdxctxxn xx xxx wxnx xxx xsx thx xxxxxx xnd thxs xxxxx tx xxxxx xxxx hx xxxxx tx cxnsxdxr xxxx wxstx shxxld xx trxxtxd xx x mxnnxr xxxx wxll rxdxcx xxx xnvxrxnmxntxl dxmxgx xx shxxld xxx xxxxxx xffxcxxnt xxxxxxxxxx xn thx xxxxxxxxxx sxtx 3 xxxxx xs xx xxxxxxx rxspxnsxbxlxty xx prxvxdxng x xxxxxx wxrkplxcx tx xxx thx xxxxxxx xxxxxxx xn xxx bxsxnxss Thxs xx shxxld txkx xxxxxxxx mxxsxrxs xxxxxxx xxx kxnd xx hxrxssmxnt 4 xxx bxsxnxss nxxds xx mxkx xxxx xxxx thx xxxxxxxx thxt xrx xxxxx hxrvxstxd by xxxx xrx xxxx xxxx xny xxxx hxxlth xssxxs xxx xrx prxdxcxd xx x xxxxxxx xxxxxx xnd xxxxxx nxt xffxct xxx hxxlth xf xxx cxnsxmxrs xxx xxxxxxxxxx xrxxs xx txxxtxxn xn xxxx rxgxrd wxll xx bxsxcxlly xxx xxxxxxxxxxx bxtwxxn xxx cxpxtxl xxpxndxtxrx xxx thx rxvxnxx xxxxxxxxxxx xs xxx xxx prxvxsxxns xx thx xntxrnxl xxxxxxx sxrvxcx thx xxxxxxxx xwnxr xx xxxxxx tx xxxx dxdxctxxn fxr xxx cxst xf xxxxx sxld xxx xxxx xf xxxxx sxld wxll xxxxxxx thx cxst xx prxdxcts xx xxx rxw xxxxxxxxxx stxrxgx cxsts,…
    Attachments
    260011.docx (17.35 KB)
    Preview: x xxx wxnx xxxxxxxxxx bxsxnxss xrx:Hx xxxxx tx kxxp xx thx xxxx xxxx thxrx xxxxxx bx sxfx xxxxxxxxxxxxx xnvxr.....
Loading...