Depreciation Conventions, Explained: Which Timing Rule Applies to Your Assets
The IRS half-year rule gives every asset six months, mid-quarter re-times each by quarter, and mid-month halves real estate's first and last months.
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Plain-text accounting insights, tutorials, and updates from the Beancount.io team.
Common-Control Transactions, Explained: Moving Assets Between Sister Companies at Carryover Basis Under ASC 805-50
Under ASC 805-50, sister-company transfers book at the parent's carrying amount — no step-up, no goodwill — with prior periods restated.
Brokered CDs vs. Bank CDs: Why the Same Bank Pays Different Rates Through Your Brokerage
Brokered CDs can beat bank CD rates, but pay simple interest, are often callable, and exit at market prices — compare APY to APY first.
XYZ, FSN, and VED Analysis, Explained: The Inventory Classifications Beyond ABC
XYZ sorts SKUs by demand variability, FSN by movement speed, VED by criticality — cross them with ABC to set safety stock, review cycles, and exit plans.
What Is FP&A? How Financial Planning and Analysis Turns Your Books Into Budgets, Forecasts, and Variance Reports
FP&A turns closed books into budgets, rolling forecasts, and variance reports — start with one quarterly cycle, then hire when decisions outrun it.
TIPS, Explained: How U.S. Treasury Inflation-Protected Securities Adjust Principal to CPI
TIPS raise your bond principal with CPI-U and pay a fixed rate on the higher base — but the IRS taxes each year’s adjustment as phantom income.
Testamentary Trusts, Explained: The Trust Inside Your Will That Protects Minor Children and Spendthrift Heirs
A testamentary trust springs from your US will after probate — it staggers inheritances for minors but can't skip probate like a living trust.
Short Sales, Explained: How the IRS Taxes Your Short Selling
A short sale is taxed when you cover, almost always as a short-term gain — and dividends you pay mid-trade face a 45-day deductibility test.
Sell or Process Further? How to Decide Whether to Sell Joint Products at Split-Off or Keep Processing
Process further only when the added revenue beats the separable cost — joint costs are sunk and never enter the math. Worked example plus four traps.
The S Corporation One-Class-of-Stock Rule: The Silent Election-Killer Hiding in Your Shareholder Agreement
Every S-corp share must carry identical distribution and liquidation rights — uneven payouts won't kill the election, but unequal rights in agreements will.
Revocable vs. Irrevocable Trusts: What Really Changes When You Give Up the Power to Amend
A revocable trust avoids probate but stays in your Federal taxable estate; an irrevocable trust removes assets from it — at the price of control.
Payment Gateways, Explained: What the Gateway, the Processor, and the Merchant Account Each Do
The gateway encrypts card data, the processor routes bank messages, and the merchant account holds funds until payout — what each fee buys.