Parsonage Allowance Meaning and Qualifications

What is Parsonage Allowance? The parsonage allowance is available to ordained ministers, priests, rabbis, imams, and other religious leaders who are considered employees of their respective religious organizations. It is important to note that the allowance is only applicable to individuals who live in a home provided by their religious …

Incidental Expenses: Definition, Types, Examples, and Taxes

Incidental Expenses: Definition, Types, Examples, and Taxes Incidental expenses are costs that are not directly related to the main purpose of a business or activity, but are necessary or unavoidable in order to carry out that purpose. These expenses are typically small and occur infrequently, but can still have an …

Hobby Loss: Understanding, Managing, and Preventing It

What is Hobby Loss? Hobby loss refers to a situation where an individual engages in an activity with the intention of making a profit, but the activity consistently generates losses. In the context of business taxes, hobby loss can have significant implications for tax deductions and the classification of the …

Employer Identification Number (EIN) – Who Needs It and How to Get It

Importance of EIN for Businesses The Employer Identification Number (EIN) is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify businesses for tax purposes. It is essentially the business equivalent of a social security number. Having an EIN is crucial for businesses as it serves several …