Its Not too Late to Save Tax via IRS Tangible Property Regs It can be a woodlot or other site that you own or lease. Sole proprietors, partners in a partnership, or shareholders in an S corporation may be able to deduct charitable contributions made by their businesses on Schedule A (Form 1040). See section 267 for more information. .The filing of an income tax return is not considered a contest and, in the absence of an overt act of protest, you can deduct the tax in the prior year. If you use the specific charge-off method, you can deduct specific business bad debts that become either partly or totally worthless during the tax year. If a debt becomes totally worthless in the current tax year, you can deduct the entire amount minus any amount deducted in an earlier tax year when the debt was only partly worthless. With certain types of property, it may be beneficial for the taxpayer to capitalize expenses rather than to deduct those expenses. For CPAs, check with the State Board of Accountancy. See the Instructions for Forms 1099-MISC and 1099-NEC for more information and additional reporting requirements. If you receive dividends from business insurance and you deducted the premiums in prior years, at least part of the dividends are generally income. Safe Harbor Election for Small Taxpayers Taxpayers are not required to capitalize as an improvement, and therefore may deduct, the costs of work performed on owned or leased buildings, e.g., repairs, maintenance, improvements or similar costs, that fall into the safe harbor Self-Employed Health Insurance Deduction Worksheet, Business Startup and Organizational Costs, Film, Television, and Live Theatrical Production Costs, Assets That Aren't Section 197 Intangibles, Incorrect Amount of Amortization Deducted, Optional Write-off of Certain Tax Preferences, Reimbursement of Travel and Non-Entertainment-Related Meals, The Taxpayer Advocate Service (TAS) Is Here To Help You. Shareholder's Share of Income, Deductions, Credits, etc. A business cannot elect to deduct their total research expenses in the current year. See Form 3115, later. They ask you questions to report your total income and the tax benefits youre entitled to claim.