Tax Matters

No Transaction Equals No Deduction

A CPA traveled to Russia to investigate business opportunities. He deducted expenses of $21,000 on his tax return for the trip. The Tax Court held that he was not “carrying on a trade or business.” The court concluded the CPA was investigating “potential trade” opportunities rather than engaging in trade activities because it found no evidence of completed business transactions. The deduction was disallowed and treated as a start-up expense. ( Massa v . Commissioner, TC Memo, 1999-63).

Michael Lynch, CPA, Esq., professor of tax accounting at
Bryant College, Smithfield, Rhode Island.


6 key areas of change for accountants and auditors

New accounting standards on revenue recognition, leases, and credit losses present implementation challenges. This independently-written report identifies the hurdles that accounting professionals face and provides tips for overcoming the challenges.


How tax reform will impact individual taxpayers

Amy Wang, a CPA who is a senior technical manager for tax advocacy at the AICPA, answers to some of the most common questions on how the new tax reform law will impact individual taxpayers.