Question
After having his best three quarters of earnings ever, and with a predicted strong fourth quarter, D, a sole proprietor who is a calendar year,
After having his best three quarters of earnings ever, and with a predicted strong fourth quarter, D, a sole proprietor who is a calendar year, cash basis taxpayer in a manufacturing business, is looking for ways to reduce his A.G.I. this year. Which of the following would probably not generate a deduction for A.G.I.?
a. | Expenses incurred in December for a big January ad campaign. | |
b. | A large fine assessed by the government (OSHA) for unsafe factory conditions | |
c. | Selling assets below his adjusted basis in them. | |
d. | Expenses incurred in providing information to the city council on matters of direct interest to the taxpayer. | |
e. | More than one of the above. |
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