Investors enjoy several tax advantages not available for other sources of income. Capital gains rates, tax-free income, like-kind exchanges, and the ability to donate appreciated stock are just a few of the possible benefits available to investors. But investor capital loss rules, on the other hand, can be a significant irritant.
Hopefully we are past the media craze about a guest on the Dr. Phil Show. Today we need to talk about what it means to have a cash-based business.
There is nothing wrong with having a business that has a high percentage of payments coming from cash. Beauty salons and food establishments are just a couple of places where paying with cash is common. Even paying expenses in cash is fine. It's all about the documentation.
Next Step Blog
Our blog is intended as a tool to keep people informed about relevant tax and accounting issues. If you have a question or an idea for a post, let us know!