| Circulation Costs |
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| If you are the publisher of a newspaper, magazine, or other periodical, you can deduct the costs of establishing, maintaining, or increasing circulation as a current business expense. However, this general rule of deductibility is limited. A current deduction is not available for expenditures for the purchase of land or depreciable property or for the acquisition of circulation through the purchase of any part of the business of another publisher. In addition, a deduction is not permitted for the cost of purchasing another publisher's list of subscribers. These expenditures must be capitalized. More... |
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| Business Leagues and Trade Organizations |
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| In order to qualify for tax-exempt status under Internal Revenue Code Section 501(c)(6), an association must show that it is devoted to the improvement of business conditions of one or more lines of business as distinguished from the performance of particular services for individual persons. The organization seeking tax-exempt status as a nonprofit business league, chamber of commerce, real estate board, or professional football league must do more than indicate the name of the organization or the object of the local statute under which it is created. More... |
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| Employment Taxes |
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| As a taxpayer who runs a business, you have a million things to worry about. Customers, inventory, advertising, competition, and keeping good employees are just a few. On top of it all, the government imposes strict requirements on the collection and payment of employment taxes. More... |
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| Deductibility of Legal and Litigation-related Expenses for a Business |
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| If a taxpayer incurs legal expenses in connection with a business transaction or primarily to preserve an existing business, its reputation, or its goodwill, then the legal expenses are generally deductible. The Internal Revenue Service will use the same tests for deductibility as for other business deductions, which precludes a current deduction for a legal expense incurred in the acquisition of goodwill or any other capital asset. In order for legal fees to be deductible, there does not have to be litigation, and the success of the taxpayer does not affect the deductibility of legal expenses. More... |
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| Taxation of Strike or Lockout Benefits |
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| Generally strike or lockout benefits that a taxpayer receives from a union out of regular union dues are taxable as a form of compensation. These taxable benefits include cash and the fair market value of other property received. However, if a taxpayer has made a voluntary contribution to a strike fund, any benefits that he or she may receive from the fund are tax-free up to the amount of the contribution. The remainder of the benefits will be taxable as wages. More... |
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