The Joint Committee on Taxation, in advance of a July 13 House Ways and Means Tax Policy Subcommittee hearing, has summarized the current law and background regarding small business income taxation.The report covers the definition of a small business; types of small business entities; treatment of start-up and organizational costs; accounting methods, including cash and accrual methods, uniform capitalization of inventory costs, and long-term contract accounting; expensing of depreciable assets; and research credit provisions.The report also includes data on size distribution, use of expensing, use of the cash method, and small business tax expenditures.

See full report, JCX-32-17, by clicking here.

Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.