It is virtually inevitable that at one time or another all of us will incur financial losses in our business and personal lives. One frequently occurring type of loss is a bad debt. Whether made in the course of business, or to a friend or relative, sometimes a loan simply cannot be repaid despite the […]
Category: Business Tax
Eligibility to Elect S Corporation Status
If you are interested in operating your new business as an S corporation, it is important to be aware that only corporations that meet certain criteria are eligible to elect S corporation status. Therefore, here are the basic requirements for eligibility as an S corporation. The corporation must be a domestic corporation (i.e., a corporation […]
2023 Tax Planning: Vehicle Depreciation and Deductions
In general, if you use vehicles in pursuit of a trade or business, you can deduct the ordinary and necessary expenses incurred while operating the vehicle. Taxpayers may use either the standard mileage rate method or the actual cost method to recover vehicle costs. For purposes of these deductions, an “automobile” includes a passenger vehicle, […]