This semester we learned that Congress designed the Code toinclude various deduc

This semester we learned that Congress designed the Code toinclude various deductions from income. (NOTE: We are notdiscussing the deductions that may arise from losses.) There aretwo deductions that are particularly important to corporations: (1)the Section 162 deduction for business expenses and (2) thedividend-received deduction. How does the IRS generally interpretdeductions (i.e. broadly or narrowly)? How do we determine whethera taxpayer is entitled to each of these two deductions? What is thepurpose of each of these deductions? How is each calculated andare there any limits on the deduction? Finally what generallygoverns when a taxpayer may take each of these two deductions?