Virtual currency is a digital representation of value. The IRS describes convertible virtual currency as a virtual currency with an equivalent value in real currency or acting as a substitute for real currency. Real currency is “the coin and paper
If you receive cryptocurrency as a payment, you need to know about the new filing requirement. In general, any business that receives cash (either US dollars or any foreign currency), coins, and as of January 1st, 2024 cryptocurrency as a
Code Sec. 174: Research and Experimental expenses incurred in the years starting after 12/31/2021 must be capitalized and amortized over 5 and 15 years for US and foreign research respectively. Taxpayers must look at where the activities are performed to
Depreciation/Amortization 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 of
In the U.S., there is no value-added tax (VAT) on the federal or state level. However, most states have a “sales and use” tax system that creates an ultimate liability for the purchaser to pay a tax that can reach
NEXUS Nexus, a connection between a business and the state, must exist for a state to impose income tax. States establish the rules to use when determining how much in-state activity creates a nexus by a business. Often, this tax
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. U.S. shareholders then include the value of cash and other assets they receive on
Dividends are payments made by a corporation to its shareholders from current or accumulated earnings. Dividends can be paid in cash, other assets, and even the company’s stock. The corporation does not get a tax deduction for these payments, but
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
A. EMPLOYEE BENEFITS Employee benefits refer to forms of compensation given to employees that go beyond their usual wages or salaries. These additional benefits encompass a diverse array of advantages, including health insurance, retirement plans, paid leave, disability insurance, and