Selected Business Expenses

Description

Business expenses are the costs of carrying on a trade or business, and they are usually deductible if the business is operated to make a profit. This mini-course reviews various expenses that businesses may deduct and the requirements that must be met for those expenses to qualify for deduction. Furthermore, practitioners can use this as a guide to determine which of their clients' taxes are deductible as business expenses.

Highlights

• Section 162 • Expenses of not-for-profit activities • Rent expenses • Interest expense • Deductible taxes • Other selected deductible costs • Amortization • Depletion -613 • Business bad debts • Depreciation

Objectives

• Cite the elements of 162 and the limitations imposed by the not-for-profit provisions stating how these elements and restrictions impact business deductions such as cost of goods sold, leases, taxes, loan points, and interest expense. • Determine the corporate dividends received deduction, identify the cost allocation on the business use of a residence and specify casualties, thefts, and research costs in the context of business deductions under 162. • Recognize methods of amortization for business startup, organizational costs, and 179 intangibles with the cost depletion methods used on natural resources. • Identify depreciation rules related to ACRS and MACRS, and cite the elements of the business bad debt provisions under 166.