Gross Receipts and Cost of Goods Sold
Business gross income begins with complete receipts and, for sellers of goods, a supportable inventory and cost-of-goods-sold computation.
Study this topicPart 2 / Businesses
Business Tax Preparation
Prepare and analyze business returns using income, deductions, assets, accounting methods, credits, basis, financial statements, and owner transactions.
12 focused lessons
Learn the rule, then work the decision.
Every lesson pairs a direct answer with a practical scenario, a common wrong turn, and a repeatable study action.
Inventory and Uniform Capitalization
Inventory methods and capitalization rules determine when product and production costs enter cost of goods sold.
Study this topicBusiness Compensation and Fringe Benefits
Compensation and fringe benefits require a business purpose, reasonable amount, recipient classification, substantiation, and correct payroll reporting.
Study this topicDepreciation, Section 179, and Bonus Depreciation
Asset recovery depends on property classification, basis, placed-in-service date, recovery system, elections, business use, and current law.
Study this topicRepairs, Improvements, and Startup Costs
Current deductions versus capitalization turn on what the cost does, the property unit involved, timing, and available safe harbors or elections.
Study this topicBusiness Travel, Meals, Gifts, and Vehicles
These expenses need a direct business connection, allocation, statutory limitations, and contemporaneous records.
Study this topicBusiness Interest, Insurance, and Taxes
Interest, insurance, and tax deductions depend on the liability, use of proceeds, coverage period, type of tax, and statutory restrictions.
Study this topicBusiness Credits and Net Operating Losses
Business credits and net operating losses have eligibility, computation, limitation, ordering, and carryforward rules that must be tracked across years.
Study this topicHome Office and Rental Use
A home-office deduction requires qualifying business use and allocation; owner and entity type influence the reporting route.
Study this topicAccounting Methods and Form 3115
Accounting methods govern when income and expenses are recognized; changing a method can require consent, Form 3115, and a Section 481 adjustment.
Study this topicBook-Tax Reconciliation and Financial Statements
Balance sheets, income statements, and Schedule M reconciliations help explain how business records become taxable income and return balances.
Study this topicRelated Parties, Owner Loans, and Transfers
Related-party transactions require arm's-length terms, correct character, timing, basis, and documentation; owner advances must be classified as debt or equity.
Study this topicTurn reading into retrieval
Test Part 2 with current IRS sample questions.
Use the free sample for immediate explanations, then continue with the PassFast question bank when you are ready for full coverage and performance reporting.