Question: "Restrictions on Tax Deductibility and Deductions and Losses" Please respond to the following:
From the e-Activity, indicate the case and provide a brief synopsis of the issue in question. Next, evaluate the degree to which the claimed business deduction(s) for the specific case you researched meet(s) the tests for being ordinary, necessary, and reasonable as required by the tax code. Explain the manner in which the three (3) tests were or were not met in the researched case.
Suggest two (2) specific deductions or losses that would most likely result in an IRS audit. Outline the key advice that you would give to a client who wishes to take the specific deductions or losses and avoid an audit simultaneously. Support your proposal with examples