This week, we focus on the concept of deductions. How do deductions affect a taxpayer's overall tax owed? How are deductions obtained? How does a taxpayer prove a deduction to the IRS so that he or she can take it? A Key Concept is the concept of casualty. You can take a casualty loss only for casualties, but what exactly is a casualty? Perhaps more importantly, what is not a casualty? Although the passive loss rules may place some limitations on the ability to deduct certain passive losses, the vast majority of business deductions aren't so limited. What Code section provides for the deduction of most business expenses? What is the test that it employs to determine whether or not such an expense is deductible? Since the enactment of the passive activity rules, the Code now provides for three general types of income under the Code. What are they? Pick one, describe what it is, and give us an example of it if you can. Need about a 160-200 response for each question