by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Depreciation is the recovery of the cost of business property over time. Property with a useful life beyond one year is capitalized and recovered through depreciation, depletion, or amortization. Types of Property Tangible Property Real property: land, buildings...
by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Rental real estate income is generally reported on Schedule E, unless the taxpayer provides substantial services (cleaning, linen service, daily maid service), in which case the activity is reported on Schedule C and is subject to self‑employment tax. Personal Use...
by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
Businesses often report different income for financial accounting and tax purposes. Financial statements aim to show economic performance, while tax returns aim to compute taxable income under IRS rules. This creates book–tax differences, which must be reconciled on...
by Turquoise Tax Systems | Jun 16, 2026 | Business Tax
The Affordable Care Act (ACA) requires certain employers to offer health insurance to full‑time employees or face penalties. These rules apply only to Applicable Large Employers (ALEs)—businesses averaging 50+ full‑time and full‑time equivalent (FTE) employees in the...
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...
