Your client, a physician, recently purchased a yacht on which he flies a pennant with a medical emblem on it. He recently informed you that he purchased the yacht and flies the pennant to advertise his occupation and thus attract new patients. He has asked you if he may deduct as ordinary and necessary business expenses the costs of insuring and maintaining the yacht. In search of an answer, consult RIA’s CHECKPOINT TAX available on-line through the SNHU Shapiro Library. Explain the steps taken to find your answer.

I consulted RIA’s CHECKPOINT TAX available on-line through the SNHU Shapiro Library and other sources. I realized that my client i.e. the physician was using his yacht as an advertisement medium to market his business and in return attract more customers. I regards to his question, the answer is that he should include all inclusive yacht’s expenses as ordinary and necessary business expenses. This should just be the same to any other cost incurred from any other advertisement method.