Is a commercial lease security deposit deductible?
A refundable lease deposit is generally an asset when paid, not current rent expense; a forfeited or applied deposit is analyzed when its status changes.
Tax Strategy Blog: Page 23
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Can a business deduct products given away as samples?
The cost of samples used to promote sales may be an advertising expense or move through inventory accounting, but must not be deducted twice.
How are inventory withdrawals for personal use taxed?
Inventory taken for an owner's personal use is not a business cost of goods sold; the bookkeeping must remove that cost from deductible inventory expense.
Our warehouse inventory was damaged before year-end and insurance settled later. What goes on the business return?
Inventory damaged before year-end, insurance settled later? Reconcile cost of goods sold, casualty treatment, claim timing, and the business return.
Can an owner deduct interest on a personally guaranteed business loan?
A guarantee alone does not make interest the owner's deduction; who is the borrower, who pays, and how proceeds are used all matter.
What records make an owner-to-business loan bona fide?
A genuine loan needs a real obligation to repay, credible terms, payment history, and consistent accounting.
When does a business recognize gift-card sales for tax?
Gift-card proceeds are advance payments; the available deferral rules depend on accounting method, applicable election, and recognition in financial.
Is shipping paid to acquire inventory immediately deductible?
Freight-in and other acquisition costs often form part of inventory cost and are recovered as the goods are sold, subject to applicable simplified rules.
Is forgiven business debt taxable?
Cancelled debt can create income unless an exclusion or other special rule applies; the tax effect can also adjust attributes such as basis or losses.
Are overtime meals for employees deductible?
Meal deductions depend on business purpose, who receives the food, location, and statutory limitations; merely working late does not create unlimited.
Home Internet Reimbursement: A Business Owner’s Guide
Build a home-internet reimbursement process for your business: document necessary use, allocate shared bills and prevent duplicate expense claims.
Employer Cell Phones and Reimbursements: Tax Rules
Business owners: compare company phones, personal-phone reimbursements and cash stipends, with a policy checklist and payroll review questions.
Is the purchase of a premium domain name deductible?
A purchased domain can be a capital asset or intangible rather than a routine annual registration fee; the rights and acquisition price matter.
Are customer deposits taxable to a small business?
An advance payment can be income when received, while a genuinely refundable deposit held as security may be a liability.
Is business credit-card cash back taxable?
A rebate tied to purchases often reduces the cost or basis of those purchases rather than being separate taxable income; promotional awards can differ.
How should contractor expense reimbursements be handled?
Amounts paid to a contractor for expenses can be part of reportable compensation depending on the arrangement; the business still needs ordinary.
Can a business deduct a payment to exit a commercial lease?
A lease termination payment may be deductible or capitalized depending on whether it ends a burden, acquires another right, or is part of a relocation.
Is a client experience a gift or entertainment expense?
The tax treatment of a tangible gift differs from entertainment, and separating food from event admission requires adequate billing.
How do S corporation charitable gifts reach shareholders?
An S corporation generally separately states eligible charitable contributions to shareholders.
Is a bank loan taxable income for a business?
Ordinary loan proceeds are generally not taxable because the borrower has a repayment obligation; interest and financing fees receive separate treatment.
When must a business use accrual rather than cash accounting?
Accounting-method eligibility depends on entity type, inventory activity, and the applicable gross-receipts tests and exceptions.
When can an accrual-method business deduct a bad debt?
An accrual-method business may deduct a bona fide receivable previously included in income when it becomes worthless, subject to substantiation.
Does sales tax apply when a business sells its equipment?
State sales-tax treatment of a business asset sale varies by jurisdiction and transaction type.
Can a buyer deduct the cost of an acquired customer list?
A purchased customer-based intangible in a business acquisition may be subject to Section 197 amortization rather than an immediate advertising deduction.
Does Debt Relief Create Boot in a 1031 Exchange?
Learn how mortgages paid off or assumed in a real estate exchange can create taxable boot, and why replacement debt alone is not the full calculation.
Which 1031 Closing Costs Count as Exchange Expenses?
A 1031 settlement statement mixes exchange expenses with property tax, rent, security deposits, and loan charges. Learn how to classify each line before computing boot.
Medical Practice Owner Tax Planning: Buy-Ins, QBI & Property
Plan a medical practice buy-in, owner compensation, retirement funding and office real estate with clear basis, QBI and implementation questions.
Tax Planning for Gym Owners Before a Buildout or Expansion
Plan a gym buildout or second location with a review of membership receipts, equipment financing, lease improvements, payroll and employee retirement eligibility.
Tax Planning for Real Estate Agents and Brokers
Evaluate commission income, S corporation costs, vehicle records, team compensation and rental-property deductions before choosing an agent or brokerage tax plan.
Tax Due Diligence Before Selling a Business: What Buyers Will Test
Prepare for buyer tax due diligence by cleaning up payroll, nexus, basis, elections, credits, worker classification, and transaction records before a sale.
Changing State Residency Before Selling a Business: Timing, Domicile, and Source Income
Moving before a business sale does not automatically eliminate state tax. Learn domicile, statutory residency, source-income, and transaction-timing issues.
The Buyer Wants a Section 338(h)(10) Election. How Much More Should They Pay?
Selling an S corporation? Model the extra tax from a 338(h)(10) election, gross up the price, and check deadlines before agreeing to the buyer's request.
Section 105 Medical Reimbursement Plans for Business Owners and S-Corporation Shareholders
Learn when a Section 105 HRA can reimburse medical costs tax free, why 2% S-corp shareholders face special rules, and what documentation is required.
Repair Regulations and Safe Harbors: Deducting Costs Without Overcapitalizing
Learn the de minimis, small-taxpayer, and routine-maintenance safe harbors, plus the betterment, restoration, and adaptation tests for property costs.
Partnership Debt Basis: How Recourse and Nonrecourse Liabilities Affect Losses and Distributions
Partnership liabilities can increase outside basis, but recourse, nonrecourse, and at-risk rules differ. Learn the Section 752 mechanics and common traps.
Hiring Your Children in the Family Business: Payroll, Documentation, and Entity Rules
Hiring children can shift earned income and teach real skills, but payroll-tax exemptions depend on entity type. Learn the documentation and compliance rules.