Business income tax reporting
This section introduces you to the process of reporting earnings and paying income tax on your business' profits. It will explain how to account for your business earnings and the kinds of income you have to report. It tells you what expenses you can deduct. It also tells you how the three most common types of business structures pay tax.
Services and information
Accounting for your earnings
Accrual or cash method
Fiscal period for income tax purposes
Calendar-year basis or a different annual basis
Business income
What qualifies as business income and how to account for it
Business expenses
What are business expenses and what qualifies as an operating expense
Inventory and cost of goods sold
How you must prepare an annual inventory. This is usually a list of goods held for sale