Deduction on Business Startup Expenses

Expense incurred for a new business can be expensive. These expenses prior to the time your business starts called “start-up cost” are typically considered capital expenditures. They are part of your investment in the business assets, and investment costs are amortized. The IRS allows business owners to deduct all or a portion of their startup […]

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Branch Profits and Branch Interest Taxes

A dividend distribution to a foreign parent of a US subsidiary would be taxed as US source income to the foreign parent. When a foreign business operates a branch in the US, the IRS imposes branch tax on the US branch profit in order to put the US branch on equal footing with a US subsidiary […]

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