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t. e. Section 162 (a) of the Internal Revenue Code (26 U.S.C. § 162 (a)), is part of United States taxation law. It concerns deductions for business expenses. It is one of the most important provisions in the Code, because it is the most widely used authority for deductions. [1] If an expense is not deductible, then Congress considers the cost ...
The U.S. Supreme Court held that the taxpayer was allowed to deduct the legal fees from his gross income because they meet the requirements of §162(a), [9] which allows the taxpayer to deduct all the "ordinary and necessary expenses paid or incurred during the taxable year in carrying on a trade or business."
Internal Revenue Code § 162 (a) Welch v. Helvering, 290 U.S. 111 (1933), was a decision by the United States Supreme Court on the difference between business and personal expenses and the difference between ordinary business deductions and capital expenses. It is one of the most important income tax law cases.
The doctrine of necessity is the basis on which extraordinary actions by administrative authority, which are designed to restore order or uphold fundamental constitutional principles, are considered to be lawful even if such an action contravenes established constitution, laws, norms, or conventions. The maxim on which the doctrine is based ...
The Taxing and Spending Clause[ 1 ] (which contains provisions known as the General Welfare Clause[ 2 ] and the Uniformity Clause[ 3 ]), Article I, Section 8, Clause 1 of the United States Constitution, grants the federal government of the United States its power of taxation. While authorizing Congress to levy taxes, this clause permits the ...
Necessary and Proper Clause. The Necessary and Proper Clause, also known as the Elastic Clause, [1] is a clause in Article I, Section 8 of the United States Constitution: The Congress shall have Power... To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this ...
For federal income tax purposes, the doctrine of constructive receipt is used to determine when a cash-basis taxpayer has received gross income. [1] A taxpayer is subject to tax in the current year if he or she has unfettered control in determining when items of income will or should be paid. [2] Unlike actual receipt, constructive receipt does ...
Common personal finance advice recommends the 50/30/20 rule — that is, 50 percent of your take-home income should go to expenses, 30 percent should go to discretionary spending and 20 percent ...