Business Expense Deduction

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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 ?
Gibson filed joint returns including Schedules C, Profit or Loss From Business, for Altermeds, which reported $770,306 in business expense deductions and $717,208 in COGS for the two years combined, against $1,552,048 in gross receipts.
Tax Court sustains deficiencies for medical marijuana business: Nonmarijuana merchandise sales did not constitute a separate business, and the cost of goods sold was limited to amounts the IRS conceded, the court finds
Business expense deductions are among the IRS' Top 10 most litigated issues.
New season, new issues: what franchisees need to know about 2016 tax filing
and necessary' business expense deductions are allowable" when
Determining self-employment income for child support purposes: the Massachusetts view compared with the national view
Luckily for Cohan, his case predated those rules, and the Second Circuit held that he should be permitted to use estimates to establish his entitlement to business expense deductions.
Estimates and the Cohan rule
In other words, the most advantageous company car plan will be one which minimizes or eliminates the need for the employee to claim any business expense deductions.
Chapter 53: company car or reimbursement plan
Entertainment Facilities--Internal Revenue Code denies trade or business expense deductions for items or facilities used in connection with entertainment--except for firms in the business of entertainment.
10 tax strategies to put money into your pocket
(7) Tax Administration: Recurring Issues in Tax Disputes Over Business Expense Deductions, United States General Accounting Office (GAO/GGD-95-232, Sept.
Notice 96-7: request for comments on further capitalization guidance
Xilinx's business expense deductions for tax years 1997 through 1999 included a total of $177 million in costs of employee exercises of options.
Ninth Circuit reverses itself in Xilinx
274 was enacted to curb abuses of business expense deductions for travel, entertainment and gifts.
An overview of recent developments in employee benefits
While the proper limits on business expense deductions is for Congress to decide, the Treasury and IRS should take a hard look at the administrative and enforcement burdens engendered by the implementing regulations and the lobbying disallowance provisions.
Lobbying disallowance provisions of the Omnibus Budget Reconciliation Act of 1993
The ATB issued two opinions involving the use of Delaware holding companies to manage and hold intangibles.(78) Both decisions upheld the Audit Division's denial of business expense deductions claimed by the taxpayers for large annual royalty payments made to their wholly owned Delaware subsidiaries.
Current corporate income tax developments
On her tax return, the taxpayer claimed a home office deduction for the room in her home and business expense deductions for a computer and printer she used at home for work.
Home-based office equipment allowed as business expense
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