by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Losses from trades or businesses—including pass‑through losses from partnerships and S corporations—are deductible only after applying four sequential limitations: Basis limitation At‑risk limitation Passive activity limitation Excess business loss limitation A loss...
by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Many federal business credits are grouped into the general business credit and claimed on Form 3800. The credit equals: Prior‑year carryforwards Current‑year credits Future carrybacks (if applicable) The general business credit is nonrefundable. It can reduce tax...
by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Section 162 allows deductions for ordinary and necessary business expenses paid or incurred during the year. These include reasonable compensation, travel away from home, and rent for property used in business. Start‑Up & Organizational Costs Start‑up and...
by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Employee compensation includes wages, benefits, reimbursements, and employer‑provided perks. For tax purposes, employers must determine whether payments are taxable, deductible, or excludable, and whether they are subject to employment taxes. Key Employee & Highly...
by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Inventory is required when the production, purchase, or sale of merchandise is a key income‑producing factor. When inventory is required, the business must use the accrual method for purchases and sales and must value inventory at the beginning and end of each tax...
