Small Business
The most frequently asked tax questions related to Small Business
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Answer Tax QuestionsDefined contribution plan - Limitation on the annual benefit
Asked Wednesday, November 29, 2000 by an anonymous user
For 2016, the annual benefit cannot exceed the lesser of: 100% of the participant's average compensation for his or her highest 3 consecutive calendar years or $210,000.
For 2014 and 2015, the annual benefit cannot exceed the lesser of: 100% of the participant's average compensation for his or her highest 3 consecutive calendar years or $210,000.
For 2013, the annual benefit cannot exceed the lesser of: 100% of the participant's average compensation for his or her highest 3 consecutive calendar years or $205,000.
For 2014 and 2015, the annual benefit cannot exceed the lesser of: 100% of the participant's average compensation for his or her highest 3 consecutive calendar years or $210,000.
For 2013, the annual benefit cannot exceed the lesser of: 100% of the participant's average compensation for his or her highest 3 consecutive calendar years or $205,000.
What is the dollar amount for the maximum account balance in an employee stock ownership plan subject to a 5 year distribution period ?
Asked Wednesday, November 29, 2000 by an anonymous user
For 2012, the dollar amount for determining the maximum account balance in an employee stock ownership plan subject to a 5 year distribution period has increased from $985,000 to $1,015,000, while the dollar amount used to determine the lengthening of the 5 year distribution period has increased from $195,000 to $200,000.
Is the cost of Farmland depreciable ?
Asked Monday, November 27, 2000 by an anonymous user
No. Farmland is not depreciable. Farm Buildings and machinery used on the farm are depreciable.
Can I deduct the costs of trees I planted on my business property ?
Asked Monday, November 27, 2000 by an anonymous user
Trees and bushes planted on your business property can be depreciated over a 15 year period. Landscapping service expenses can be deducted in the year performed.
Goodwill - amortizable basis
Asked Monday, November 27, 2000 by an anonymous user
The cost of business intangibles such as Goodwill, covenants not to compete amounts, trademarks are amortized over a 15 year period. Most intangible assets are expected to benefit more than one year, so their cost is a capital expenditure under Internal Revenue Code section 167 (depreciation), the primary authority for deducting intangibles.
I just bought a sole proprietorship . How do I come up with individual cost amounts for the different assets I acquired ?
Asked Monday, November 27, 2000 by an anonymous user
Although you purchased a sole proprietorship for 1 amount, that amount must be allocated to the individual assets for depreciation purposes. Allocation is based on the proportion of the sales price to an individual assets fair market value at the time of the sale. Speak to your local CPA about the allocation formulas.
Can I deduct the loss I incurred on the trade in of my business equipment ?
Asked Monday, November 27, 2000 by an anonymous user
No. You may not deduct the loss you incurred on a trade in of your business equipment.
Are the royalties I received for writing a book subject to self-employment taxes ?
Asked Monday, November 27, 2000 by an anonymous user
The Royalty checks for writing a book is considered income subject to self-employment tax if the recipient can be considered to be regularly engaged in that business or profession and will report this activity on a Schedule C.
The Royalty checks for writing a book is not considered income subject to self-employment tax if the recipient writes only one book as a sideline and will report this activity on a Schedule E
The Royalty checks for writing a book is not considered income subject to self-employment tax if the recipient writes only one book as a sideline and will report this activity on a Schedule E
Army Reservist - Transportation
Asked Wednesday, November 22, 2000 by an anonymous user
Generally, transportation from your house to the Army reserves meeting that is not overnight is not deductible.
If you travel overnight you may claim the deduction. Transportation from your regular work location to a meeting on a regular workday is deductible as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
If you travel overnight you may claim the deduction. Transportation from your regular work location to a meeting on a regular workday is deductible as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A.