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...
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...
