Question

In: Accounting

IRS Publications, Publication 17. 1) What is the purpose of this publication? 2) What are the...

IRS Publications, Publication 17.

1) What is the purpose of this publication?

2) What are the various sections of the publication and what information does each section contain? Be general, not specific.

3) Using the index at the end of the publication, choose two items (income or deduction) and briefly explain the tax rules for each item.  

Solutions

Expert Solution

Answer to question no:1:

The purpose of IRS Publication is following:

a) It contains the genaral rules for filling a Income Tax Return.

b) It explains the Tax Laws.

c) It helps in paying correct tax,

Answer to question no:2:

There are 6 sections in IRS Publication 17.

Section 1: The Income Tax Return,Section-2: The Income,Section-3:Gains and losses, Section-4:Adjustments to aincome, Section5: Standard Deduction,Section 6: Taxes and Credit.

Answer to question no 3:

Car Expenses: Standard millage rate to be allowed as cost of operating car for business is 53.5 cents per mile.

Travel Expenses: It is defined as ordinary or nesessary expenses incureed during travelling away from home in relation to business or job or profession.It covers laws relating to travelling away from home,tax home and what expenses are allowed and what expenses are dis allowed.It also dicusses standard meal allowances.


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