Small Business
The most frequently asked tax questions related to Small Business
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.
Can I deduct the costs of trees I planted on my business property ?
Asked Monday, November 27, 2000 by an anonymous userCPA Answer:
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 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.
Are the royalties I received for writing a book subject to self-employment taxes ?
Asked Monday, November 27, 2000 by an anonymous userCPA Answer:
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 userCPA Answer:
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.
Army Reservist - Uniform Maintenance
Asked Wednesday, November 22, 2000 by an anonymous userCPA Answer:
Generally, the costs to launder your uniform are deductible as a miscellaneous itemized deduction subject to the 2% AGI limitation on IRS Schedule A.
This is true if you are prohibited from wearing the uniform when off duty.
This is true if you are prohibited from wearing the uniform when off duty.
What is a NonProfit 990 tax return ?
Asked Tuesday, November 21, 2000 by an anonymous userCPA Answer:
Individuals and Corporations must file yearly tax returns, nonprofit entities must file annual information tax returns on Federal Form 990 - Return of Organizations Exempt from Income Tax or Form 990EZ (990 short form). These forms compile financial information including program activities, names of board members, and other basic information.