morrisliberty
Initiate Member
Joined: Jan 1, 2011 11:40:05 GMT -5
Posts: 50
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Post by morrisliberty on Sept 4, 2011 12:33:19 GMT -5
Hello,
I am having a hard time understanding the nuances of certain terms used throughout Section 280A. The following terms, attributable, allowable, allowed, and allocated {AAAA} and the words which precede {AAAA}, deduction , item and expense{DIE} are used in Section 280A. Could someone exlain the meaning of these terms?
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mwcpa
Senior Member
Joined: Jan 7, 2011 6:35:43 GMT -5
Posts: 2,425
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Post by mwcpa on Sept 5, 2011 6:27:49 GMT -5
Morris..... I would start with Websters.....
attributable...."resulting from or belonging to a person or thing".... the mortgage interest is attributable to the home that has the debt.... the mortgage interest results from the debt on the home...
allowable.... "permissible" admissible" "can".... a depreciation deduction is allowable on business use property... another words you "can" take a depreciation deduction.
allowed.... "did what is allowable"....
allocated.... "assign or allot for a particular purpose"..... the home offices expenses are allocated between business and personal use based upon the square footage of area of the home that is regularly and exclusively used compared to the square footage of the entire home.
deduction... "expense subtractions".... income less deductions equals taxable income.... income less expenses equals taxable income....
item... "A single article or unit in a collection, enumeration, or series".... other expenses included the items of office supplies, travel, meals, and telephone costs.....
expenses.... "Something spent to attain a goal or accomplish a purpose"....
hope this helps....
an item that is allowed or allowable deduction is an expense must be attributable to the property and is allocated to business and non business portions....
I think I got all of the words into a clear sentence to help better explain...
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