LO.3 Apply the Internal Revenue Code deduction disallowance provisions associated with the following:

public policy limitations, political activities, excessive executive compensation, investigation of business opportunities, hobby losses, vacation home rentals, payment of others’ expenses, personal expenditures, capital expenditures, related-party transactions, and expenses related to tax-exempt income.

LO.4 Identify tax planning opportunities for maximizing deductions and minimizing the disallowance of deductions.