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What is considered a business asset for income tax purposes? For tax purposes, a business asset is generally property, plant, or equipment used in the normal course of business that has a useful life of more than one year. Assets can be tangible (such as machinery, computers, furniture, and vehicles) or intangible/digital (such as certain software or licenses). Under IRC Section 263(a), the IRS requires businesses to capitalize the costs of acquiring, producing, or improving tangible...

As the year winds down, preparation for the new overtime reporting rules newly applies to employers. Employers are required to report to employees any “qualified overtime” amounts paid so that the employees may take the new deduction on their personal tax returns this year. The amount may be reported either in Box 14 of the W-2 or in a simple statement from the employer. Employees will be looking for that information to file their return and it should be provided to them by January 31, 2026....

Handing out a bonus is one of the best ways to recognize your team’s hard work. Whether it’s a holiday thank-you, a performance reward, or a surprise incentive, employees love to know their efforts are valued. But here’s the part many business owners don’t realize: a bonus isn’t just a gift — it’s taxable income. That means every bonus must go through your payroll system, just like a regular paycheck. Why Bonuses Must Go Through Payroll: Tax compliance: The IRS and state agencies classify...