Tax Guide

Depriciation

DEPRECIATION MEANINGDepreciation is an annual income tax deduction that allows you to recover the cost or other basis of certain property over the time you use the property. It is an allowance for the wear and tear, deterioration, or obsolescence

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State Sales Taxes

Activities that can establish sales tax nexus in a state There are several ways a business can establish sales tax nexus, or an obligation to collect Sales tax, including: Economic nexus Economic nexus is established when an out-of-state company’s sales

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State Income Taxes

Nexus Nexus, a connection between a business and the state, must exist for a state to impose an income tax. States establish the rules to use when determining how much in-state activity creates a nexus by a business. Often, this

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Corporate Liquidation

When a corporation liquidates, the value of the assets it holds as of the date of liquidation is included in its taxable income for that year.  The US shareholders then include the value of cash and other assets they receive

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Meals and Entertainment

Meals during travel will be reimbursed as travel expenses based either on per diem allowance rates or actual amounts expensed (see Travel Expenses section for the rules on per diem allowance reimbursements). Business meals and entertainment are only reimbursable if

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Research and Experimental Expenditures (R&E) Issues

Starting on January 1st, 2022 R&E expenses are not currently deductible.  They need to be capitalized and amortized over 5 and 15 years if research is done inside or outside the US respectively.  R&E expenditures are research and development costs

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Paying Service Providers

There are two main ways to pay service providers in the US: as employees and as independent contractors. The employees receive wages subject to payroll taxes.  Employer’s expense on top of the wages is roughly 8% and employee’s share of

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