To be deductible, a business expense must be ordinary and necessary and must be reasonable in amount. However, there are a number of other limitations on business deductions. One such expense is costs related to a country club membership and use. This assignment lets you explore how a taxpayer's taxable income is impacted by country club-related expenses.

Action Item

1. State the issue.
   1. State your conclusion based on your findings.
   2. Provide an analysis explaining why you believe your findings address the question at hand.
   3. Provide proper tax research citations in your analysis