Business Expense

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Business Expense

Costs that result from having and maintaining a business. Rent and employee salaries are primary (and expensive) examples of business expenses, as are office supplies and raw materials from which to make products. Under most circumstances, business expenses are tax deductible.

References in periodicals archive ?

Once again, the CCA did not offer a definitive answer as to whether the taxpayer's contributions to organizations that conduct lobbying were deductible business expenses because the nature and extent of these organizations' lobbying activities were not clear.

Charitable contribution or business deduction: Chief Counsel Advice 201543013

Under the safe harbor, local lodging expenses will be treated as an ordinary and necessary business expense if:

Final Regs. include safe harbor for local lodging costs

Generally, wage recharacterization is present when the employer structures compensation so that the employee receives the same or a substantially similar amount whether or not the employee incurs deductible business expenses related to the employer's business.

IRS illustrates employee reimbursement plans

So how to explain this apparent inconsistency of tax treatments of deductions of business expenses settled by barter?

Finding clarity in the IRS's position on barter transactions

Speltz deducted the reimbursements on her schedule C as a business expense and the couple excluded the payments on their joint tax returns.

Medical reimbursement plan for employee-spouse

One measure of their commonness," TEI said, "is their longstanding treatment as an ordinary and necessary business expense deduction under section 162.

Liaison meetings with IRS commissioner, LMSB, and Treasury Department top advocacy agenda: TEI urges staged implementation of e-filing mandate; institute reiterates opposition to codifying of economic substance doctrine; independence of appeals undermined by IRS shelter, TEI asserts

By contrast, consider accountants who do business through a corporation or LLC; have a city business license; lease space from an accounting firm; receive some work from the firm, but do work for, and are paid by, multiple clients generated independently of the firm; invoice the firm for the work done for the firm's clients; employ a staff; dictate the manner and means of the work; and pay their own business expenses.

Contractor traction: the use and abuse of independent contractor status

An obvious benefit comes at tax time: Instead of depreciation or Alternative Minimum Tax (AMT), you may be able to deduct lease payments as business expenses.

Own or rent? Revisiting the pros and cons of leasing vs. purchasing

This title is designed for those who must keep a diary on business use of automobile and other business expenses.

1990 Business Expense Log

For example, accountable expense plans were developed to permit employees to be reimbursed by their employers for their business expenses without having to include the reimbursements in income.

Current developments: in the last year, many significant developments affected individual taxpayers. This article summarizes legislation, the principal residence exclusion, AMT, income recognition, deductions and other significant areas

Second, as employees, most clerics can be reimbursed by their organization for business expenses without any income tax consequences as long as the reimbursement is through an "accountable plan.

Tax planning for servants of God: unique tax rules apply to members of the clergy