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.



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100th ANNIVERSARY

Black CPA Centennial, 1921–2021

With 2021 marking the 100th anniversary of the first Black licensed CPA in the United States, a yearlong campaign kicked off to recognize the nation’s Black CPAs and encourage greater progress in diversity, inclusion, and equity in the CPA profession.