by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Under Section 263A, certain businesses must capitalize direct and indirect costs related to producing or acquiring property. These costs become part of the property’s basis and are recovered through depreciation, amortization, or cost of goods sold—not deducted...
by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Businesses must choose a tax year and an accounting method to report income and expenses. Both must clearly reflect income and be applied consistently. Tax Years A tax year is the 12‑month period used to keep records and file returns. A business may use: Calendar year...
by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Businesses must file information returns to report specific transactions to the IRS and must also provide copies to recipients. Any entity—individual, corporation, partnership, trust, or estate—with reportable payments must file. Filers with 10+ forms must file...
by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Businesses must understand how self‑employment tax, employment taxes, unemployment taxes, and estimated payments work. Each category has its own rules, forms, and thresholds. Self‑Employment Tax Self‑employment tax covers Social Security and Medicare for individuals...
by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
A business must identify the worker’s classification before deciding how to treat payments. Workers fall into four categories: common‑law employees, statutory employees, statutory nonemployees, and independent contractors. Common‑Law Employees A worker is an employee...
