Abstract
The avoidance of taxes is the only intellectual pursuit that carries any reward.
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Notes
- 1.
This rule was named after playwright George M. Cohan of Give My Regards to Broadway and Yankee Doodle Dandy fame. The Cohan rule is covered in depth in Chapter 17.
- 2.
Sections 1.274-5(c)(2)(iii) and 1.274-5T(c)(2) of Income Tax Regulations.
- 3.
Section 1.274-5T(c)(3) of Income Tax Regulations and Temporary Income Tax Regulations, 50 Fed. Reg. 46020 (Nov. 6, 1985) specify that substantiation by other sufficient evidence requires the production of corroborative evidence in support of a taxpayer’s statement specifically detailing how he or she met the requirements.
- 4.
See US Tax Court, Solomon v. Commissioner, T.C. Memo 2011-91, http://ustaxcourt.gov/InOpHistoric/SOLOMON2.TCM.WPD.pdf , pp. 8–9.
- 5.
IRS Notice 2012-1 (available at www.irs.gov/pub/irs-drop/n-12-01.pdf ) lists the 2012 standard mileage rates.
- 6.
This limit decreases to $139,000 once expenditures exceed $560,000 (2012 limits).
- 7.
See IRS, Part III, Administrative, Procedural, and Miscellaneous, Rev. Proc. 2012-23, www.irs.gov/pub/irs-drop/rp-12-23.pdf .
- 8.
See, for example, www.bradfordtaxinstitute.com/Endnotes/Rev_Rul_90-23.pdf .
- 9.
See Internal Revenue Bulletin 1999-5, p. 4 at www.irs.gov/pub/irs-irbs/irb99-05.pdf .
- 10.
See IRS, Employer’s Tax Guide to Fringe Benefits (2011), Publication 15-B, www.irs.gov/pub/irs-pdf/p15b_11.pdf , “Lease Value Rule.”
- 11.
There are other rules regarding this exception; generally, the vehicle cannot be driven by a “control employee”—for example, someone who earns $195,000 or more who owns 1% or more of the stock of the company.
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© 2013 Russell Fox
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Fox, R. (2013). The Car. In: Tax Strategies for the Small Business Owner. Apress, Berkeley, CA. https://doi.org/10.1007/978-1-4302-4843-9_7
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DOI: https://doi.org/10.1007/978-1-4302-4843-9_7
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