#tax-deductions
Maximize tax deductions and reduce your tax liability legally
Legal fees are deductible only when the underlying claim arose from your business — what losing would cost you is irrelevant.
Book depreciation follows GAAP matching; tax depreciation follows MACRS plus Section 179 and bonus — so one asset shows two different expenses.
Voice-over artists report 1099 income on Schedule C, so every studio expense cuts both income and self-employment tax — start with the home office.
GAAP books bad-debt expense up front through the allowance method; IRS Section 166 deducts only specific worthless debts. How the timing gap works.
Break-even months equal closing costs divided by monthly P&I savings — except on cash-outs and term resets, where IRS tracing and total interest decide.
A write-down cuts an asset to recoverable value; a write-off removes it entirely. The IRS deducts only specific worthless debts under Section 166.
The IRS lets accrual-basis employers deduct unpaid year-end bonuses only if the liability is fixed by December 31 and paid by March 15.
Own equipment you will keep past five years and write it off with Section 179; lease fast-aging gear at fair market value and deduct each payment instead.
Depreciation expenses tangibles minus salvage value; amortization writes off intangibles with none — and the IRS stretches acquired intangibles over 15 years.
An accrual-basis deduction needs a fixed liability, a determinable amount, and economic performance under IRS Section 461(h) — miss one and it moves a year.
C corporations deduct 50%, 65%, or 100% of dividends received — once the stock clears the 45-day holding period. IRS tiers, limits, and traps explained.
IRS de minimis safe harbor — expense business items up to $2,500 ($5,000 with audited financials) with a written policy plus an annual election.
