Question

Tennessee Excise tax

Forum|Forum|2 years ago
October 14, 2023
2 replies
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How can Tennessee businesses deduct excise tax as business expenses when the exact amount is unknown? In Tennessee, the excise tax is 6.5% of a business's net taxable income.

A

Anonymous_

Employee

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J

jscrnguyenAuthor

No text available

Rick19744

Employee

While there is not much detail here, but regardless, you should probably meet with a tax professional to have a one-on-one as this type of question is really beyond the scope of a forum such as this.

But in general:

First, the deductibility will depend on your method of accounting.
- If cash method, it is cut and dry. Deductible when paid.
- If accrual, the issue becomes a bit more complicated.
For accrual method taxpayer's you need to look at the economic performance provisions along with the possibility of the recurring-item exception.
As a result of bullet two, that is why it is best to meet with a tax professional.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.