Question: Is custom software that is donated to a 501(c)(3) charity deductible? What about the data that goes with the software? Answer: An important principle when considering the donation of intellectual property is that for the gift to be deductible, the donor must transfer all substantial rights in the intellectual property such that the donation [...]

Question: Is the expense for off-shore labor deductible even though no 1099 is issued? During an audit, the IRS told me that the expense wasn’t deductible because the contractor was not an employee and neither was a 1099 issued. Answer: In general, a 1099 is not required for a valid business expense to be deductible. [...]

Question: Are self-employment taxes due from the managing members of an LLC when the only income to the LLC is earnings from angel investing activities. Answer: By default an LLC is a disregarded entity unless an election is made to be treated as a corporation. When an entity is disregarded, income and losses flow through [...]