Your client, Sam, is a small business taxpayer. He is under the impression that every...
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Accounting
Your client, Sam, is a small business taxpayer. He is under the impression that every dollar he spends currently related to his business will reduce his taxable income. How would you explain the tax law related to the deductibility of expenses to Sam? Why are some expenses not deductible? Provide an example of an expense to support your response. Provide an alternative example of where Sam might have an expense disallowance. Also, explain what actions Sam could take to turn a disallowed expense into a deductible expense.
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