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Introduction of Business & Occupation Tax in Washington State
The Business & Occupation (B&O) tax is a type of gross receipts tax imposed on businesses in the state of Washington. It is not an income tax but rather a tax on the business's gross income. The B&O tax applies to various business activities, and the rate varies depending on the classification of the business.
Who Needs to File U.S. Individual Income Tax Return?
Individual income tax is imposed on the worldwide-sourced income of U.S. citizens or residents, and on the domestic-sourced income of U.S. non-residents. According to the IRS, not everyone is obligated to file a tax return, such as in situations below the standard deduction. The following article will provide a brief overview of who is required to file a U.S. individual income tax return.
Introduction to U.S. Capital Asset
A business asset refers to a valuable item owned by a company, including a wide range of categories like physical, tangible goods, such as vehicles and real estate, as well as intangible items. The U.S. tax code sections 1231, 1245, 1250, and capital assets primarily cover most of business assets. This article will provide a brief overview of the capital assets.
Type of U.S. Business Assets
Sections 1231, 1245, and 1250 of the United States Internal Revenue Code pertain to the tax treatment of gains and losses on the sale or disposition of certain types of property. This article will discuss the different types of business assets covered and depreciation of U.S. business assets.
U.S. Advanced Individual Tax Deductions on Schedule C
The IRS Schedule C (Form 1040) is commonly utilized by individuals to submit their individual income tax returns, disclosing their annual income, and determining the taxable portion after accounting for tax deductions and credits. The following will talk about entities that are required to report on Schedule C, as well as the specific deductions applicable to Schedule C.
Recordkeeping for U.S. Small Business
Maintaining accurate and organized records is a crucial obligation for small business proprietors, irrespective of the size of their workforce, the nature of their services, or the type of business entity. Recordkeeping involves the systematic and methodical storage of business documents. The subsequent section examines the significance of recordkeeping for small businesses and outlines the recordkeeping requirements stipulated by the IRS.
U.S. Tangible Property Regular MACRS Depreciation
Generally, the acquisition of property by a company is a capital expenditure and is not directly deductible in one year for the full cost of acquiring, producing, or improving a property and putting it into use. Instead, you generally must depreciate such property. Depreciation is the recovery of the cost of the property over several years. You deduct a part of the cost every year until you fully recover its cost.
U.S. Company Incentive Stock Options Introduction
Equity compensation is a form of noncash pay that offers employees ownership in the company they work for. In the U.S., Equity compensation can be used by both public and private companies, and is especially common in start-up companies.
U.S. Tax Deductibility of M&E Expenses After 2017 TCJA
As defined by the Internal Revenue Code (IRC), "entertainment" encompasses activities typically associated with entertainment, amusement or recreation. This includes activities such as attending nightclubs, theaters, and sporting events, as well as participating in hunting, fishing, and similar trips. Additionally, the term "meals" broadly encompasses all expenses related to food and beverages incurred during various business activities.
Taxation of U.S. Company Debt Acquired by Related Party
Cancellation of debt (COD) refers to the act of a creditor releasing a borrower from a debt obligation to repay a debt. Taxpayers in the United States may face tax implications when debt is cancelled, a situation referred to as cancellation-of-debt (COD) income. As per the Internal Revenue Code, the discharge of indebtedness must be included in a taxpayer's gross income.