| Work-Related Education Expenses |
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| If you are an employee, you may be able to deduct the costs of qualifying work-related education, but only if you itemize instead of taking a standard deduction. The deduction allowed would be the amount by which your work-related education costs plus other job and certain miscellaneous expenses exceed two percent of your adjusted gross income. If they don't exceed this floor, no deduction is allowed. If you are self-employed, you may deduct the costs of work-related education directly from your self-employment income. More... |
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| Section 527 Political Groups |
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| A political organization subject to Section 527 of the Internal Revenue Code (usually called a 527 organization) is a party, committee, association, fund, or any other type of organization run primarily to directly or indirectly accept contributions and/or make expenditures for an exempt function. The exempt function of a political organization is influencing or attempting to influence the nomination, election, or any other type of selection of an individual to any public office or to an office in a political organization. More... |
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| Dividends Received Deduction |
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| A corporation that receives dividends from a taxable domestic corporation may be entitled to a special deduction from gross income. The recipient corporation may deduct, within certain limits, 70 percent of the dividend received if the corporation receiving the dividend owns less than 20 percent of the corporation distributing the dividend. The amount of the deduction is increased to 80 percent of dividends received if 20 percent of the distributing corporation is owned by the recipient corporation. More... |
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| Tax Benefit Rule |
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| The purpose of the tax benefit rule is to create a balance between what appeared to be a proper deduction at the time it was taken and the fact that the assumptions on which the deduction was based were erroneous. If a taxpayer deducted an amount from his gross income in one year resulting in a tax benefit to him, and an event occurred in a later year that was fundamentally inconsistent with the premise on which the deduction was based, then the taxpayer must include an amount in gross income of the current year to the extent that the amount was deducted in the prior year. More... |
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| Business Income |
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| The definition of taxable business income is a broad one. To paraphrase the Internal Revenue Code, it includes all income from whatever source it is derived. In general, anything of value received by a business is considered income unless it is specifically excluded by the tax laws. More... |
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