493 plain-English guides on small business & bookkeeping, each one ending in what to do next.
Page 6 of 21, newest first.
Small businesses that accept cryptocurrency as payment must report the fair market value as income. Crypto mining is self-employment income.
Small Business & BookkeepingWhen a lender forgives or cancels a business debt, the cancelled amount is generally taxable as ordinary income under IRC 61(a)(12).
Small Business & BookkeepingWhen a business debt is forgiven, canceled, or discharged for less than the full amount owed. IRC 108 exclusions from cancellation of debt income: |.
Small Business & BookkeepingBusiness-related education is deductible if it maintains or improves skills in the current business. Education deduction rules (Treas.
Small Business & BookkeepingUnder IRC 195, a business can deduct up to $5,000 of startup costs in the first year of operations. Every new business incurs costs before it opens.
Small Business & BookkeepingA defined benefit plan allows a business owner to contribute (and deduct) far more than any other retirement plan. Defined benefit plan contribution.
Small Business & BookkeepingThe Modified Accelerated Cost Recovery System (MACRS) under IRC 168 is the primary depreciation system for most business property placed in service.
Small Business & BookkeepingWhen Section 179 and bonus depreciation don't fully apply, MACRS (Modified Accelerated Cost Recovery System) determines how business assets.
Small Business & BookkeepingBusinesses can depreciate assets using MACRS (accelerated), Section 179 (immediate), bonus depreciation (100% per OBBBA), or straight-line.
Small Business & BookkeepingDepreciation is how businesses deduct the cost of long-lived assets (equipment, vehicles, machinery, furniture, computers) over time.
Small Business & BookkeepingSection 179 lets you deduct equipment costs in year one. How it stacks with bonus depreciation and MACRS, and which method saves the most tax.
Small Business & BookkeepingMACRS, straight-line, ADS, Section 179, and bonus depreciation each apply to different assets and situations. How to pick the right method.
Small Business & BookkeepingDepreciation recapture is the tax you pay when you sell a business asset for more than its depreciated (adjusted) basis.
Small Business & BookkeepingWhen you sell a business asset for more than its depreciated value, the IRS recaptures the depreciation deductions you took.
Small Business & BookkeepingSelling depreciated business assets triggers depreciation recapture under IRC Sections 1245 (equipment) and 1250 (real property).
Small Business & BookkeepingBusinesses in federally declared disaster areas can deduct casualty losses, claim the loss on the prior year's return for a faster refund.
Small Business & BookkeepingEIDL loan proceeds are not taxable income. Interest is deductible as a business expense. If forgiven (rare for EIDL), the cancellation may be taxable.
Small Business & BookkeepingSince the Supreme Court's 2018 Wayfair decision, states can require remote sellers to collect sales tax once they exceed economic nexus thresholds.
Small Business & BookkeepingThe economic substance doctrine, codified in IRC 7701(o) by the Health Care and Education Reconciliation Act of 2010. The two-prong test (IRC 7701(o)): |.
Small Business & BookkeepingThe economic substance doctrine (codified in IRC 7701(o)) requires that a transaction have meaningful economic effects apart from tax benefits.
Small Business & BookkeepingThe economic substance doctrine, codified under IRC 7701(o), allows the IRS to disallow tax benefits from a transaction that lacks economic substance.
Small Business & BookkeepingBusiness-related education is deductible if it maintains or improves skills in the current business. Deductible (maintains or improves current skills):.
Small Business & BookkeepingEducation and training expenses are deductible as business expenses under IRC 162 when the education maintains or improves skills required.
Small Business & BookkeepingEducation expenses are deductible when they maintain or improve skills required in your current trade (Reg. 1.162-5). Education expense deductibility.