Small Business
The most frequently asked tax questions related to Small Business
Is there a web site that will give me a listing of accounting and tax software packages available on the Internet ?
Asked Monday, December 04, 2000 by an anonymous userCPA Answer:
One address is www.kentis.com/acctxpub.html
Can me and my wife be a Sole Proprietorship ?
Asked Monday, December 04, 2000 by an anonymous userCPA Answer:
No. Technically a husband and wife can't jointly own a business as a sole proprietor. They can't split a sole proprietorship and file two Schedule C's and two Schedule SE's. To avoid being classified as a partnership, a husband and wife team operating a business together can treat one spouse as an employee and the other spouse as the owner.
Defined contribution plan - Limitation on the annual benefit
Asked Wednesday, November 29, 2000 by an anonymous userCPA Answer:
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 userCPA Answer:
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 userCPA Answer:
No. Farmland is not depreciable. Farm Buildings and machinery used on the farm are depreciable.
Goodwill - amortizable basis
Asked Monday, November 27, 2000 by an anonymous userCPA Answer:
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.
Can I claim a depreciation deduction on my inventory ?
Asked Monday, November 27, 2000 by an anonymous userCPA Answer:
Property includable in inventory is not depreciable. Beginning and ending and purchased inventory costs are used in your cost of goods sold calculation to determine your gross profit.
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 userCPA Answer:
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 userCPA Answer:
No. You may not deduct the loss you incurred on a trade in of your business equipment.