Business Expense Deduction

A reduction in a business's taxable income by costs that result from having and maintaining the business. Rent and employee salaries are primary (and expensive) examples of business expenses that are qualified for the deduction. For example, if a business has $1 million in revenue and $400,000 in overhead eligible for the business expense deduction, its taxable income is only $600,000.

References in periodicals archive ?

Business owners should note the IRS recently issued some guidance on the business expense deduction for meals and entertainment, following changes in the 2017 Tax Cuts and Jobs Act.

Under the wire As year ticks down, CPAs say there's still time for last-minute moves

The business expense deduction is available to any business taxpayer, regardless of whether it is doing business as a sole proprietor, partnership or corporation, as long as the payment qualifies as an ordinary and necessary business expense.

United States : Payments under state or local tax credit programs may be deductible as business expenses

In general terms, here is an explanation of how to arrive at an employee business expense deduction. First, you need to see how much you have spent on items that are ordinary and necessary for your role at work.

Deducting employee business expenses

In addition to these changes, there are many technical changes for depreciation of improvements on real property, expensing of business assets, loss limitations and business expense deduction limitations.

OP-ED: Law provides tax cuts, but not tax simplification

Rosenthal, who previously worked as legislative counsel to Congress' Joint Committee on Taxation, said he expects lawmakers to continue to allow the business expense deduction. As with many aspects of the Republican tax plan, "the money basically goes to corporations and big business.

Corporations to keep tax break lost by millions of Americans

their evaluation of any claimed business expense deduction by asking: Is

Determining self-employment income for child support purposes: the Massachusetts view compared with the national view

(17) For example, in the previously discussed Canter case, the court denied the taxpayer a business expense deduction when she resigned her job and became a full-time nursing student because she was not on temporary leave of absence at the time she incurred the expenses.

Tax treatment of expenses incurred by individuals temporarily out of work

To qualify, the purchase must be of tangible personal property or a taxable service for which a business may claim a business expense deduction or a depreciation deduction for federal income tax purposes.

Changes in state sales tax law coming Jan. 1

"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

Insurers also will need to consider that the new table will reduce the reserve business expense deduction on their tax returns, Luff said.

A matter of life and life. (Editor's Prologue)

Keep full business expense deduction for automobile, truck, boat, motorcycle, and farm implement dealers who use floor plan financing.

United States : Cassidy Applauds Final Senate Passage of Tax Reform Legislation Benefiting Louisiana

Indeed, one measure of their commonness is their longstanding treatment as an ordinary and necessary business expense deduction under section 162.

Comments on revenue offset provisions in Senate tax reconciliation bill: January 10, 2006