Here are some basics on Tax Accounting Periods:
What are the accounting periods?
Yearly (or annual) accounting periods are 12-months each and are used to calculate taxable income. In accounting, these periods are known as the “taxable year”.
What are some parameters of accounting periods:
- For partnerships, all participating partners must use the same taxable year
- S Corporations typically use the calendar year as it’s tax accounting period
- Individual Taxpayers generally do use calendar year; fiscal year is sometimes used if records are maintained adequately,
- Once an accounting period has been selected, IRS consent must be obtained to change the accounting period
Learn more:
Introduction - CFP | Investopedia
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