Legal articles focusing on Taxation Law |
| Income Taxation of Your Bankruptcy Estate |
| When you file for bankruptcy, your assets form what's called your bankruptcy estate. The bankruptcy estate is treated as a separate entity for federal income tax purposes. You should be familiar with how your bankruptcy estate will be taxed, and what this could mean for your individual taxes. |
| Are Attorney's Fees Tax Deductible? |
| Sometimes you have a legal problem or question and you need an attorney, such as a divorce, an injury from a car accident, or help drafting a lease for a house you want rent out. Of course, you have to pay for the legal services, and so you may ask: Is there a tax deduction for attorney fees? |
| Employment Taxes for Small Businesses |
| As with most other "big" businesses, there are employment taxes for small businesses like yours. This is true whether you have employees or not. So, before you take that first job as a subcontractor or hire employees, it's critical that you understand your obligations for employment taxes. |
| Deducting Expenses under the Accrual Method |
| The general rule governing the timing of deductions is that any deduction is to be taken for the taxable year which is the proper taxable year under the method of accounting used in computing taxable income. On the accrual method of accounting, deductions are to be taken when liabilities arise. |
| Changing Your Accounting Method |
| Once a company has set up its accounting method, it must get approval from the IRS before it can change to another method by filing Form 3115. If a company doesn't regularly use an accounting method that clearly reflects its income, the IRS will refigure the company's income under another method. |