1. A contribution to a fund to finance Honest Abe’s campaign for mayor.

Contributions to a political campaign are never deductible.

1. A contribution to the Hardcore Gamblers’ Association to fund efforts to persuade the public to vote for parimutuel betting on licensed turtle races.

A contribution to a fund to influence public opinion about how to vote is not deductible.

1. Joyce, who is in the import-export business, sends an employee to Washington, D.C., to monitor current legislation. The expenses for the one-week trip are $1,500.

Expenses incurred to monitor the impact of legislation on a business are deductible.  The expenses associated with monitoring  legislation are considered to be ordinary and necessary expenses incurred in a trade or business.

1. Ruth, a small business owner, incurs $3,000 in travel, lodging and meal expenses to testify in Washington, D.C., on the effect on small business of new environmental regulations.

The expenditures incurred by Ruth are considered lobbying expenses and as a general rule are not deductible.