Accounting Services For Small Businesses – If an expense is later recovered in the same tax year, such as a rebate or credit for a returned item, the recovery is treated as a reduction in the expense deduction for that category of expense. If an expense that was deducted in one tax year is later recovered in a different tax year, the recovery is included in income in the year of recovery, unless the expense did not reduce tax in the year it was originally deducted.
Amare Berhie, Enrolled Agent
Licensed
by the IRS
amare@abataxaccounting.com
651-300-4777
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