Self Study: Selected Business Expenses 2022

Overview

This course is available until April 30, 2025.

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.

Notice

Downloadable PDF