Explore BrainMass

Explore BrainMass

    Taxation: Why are certain pass-through items separately stat

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Could you please help me with the following accounting/taxation question?:

    Why are certain pass-through items separately stated?

    © BrainMass Inc. brainmass.com June 4, 2020, 1:56 am ad1c9bdddf

    Solution Preview

    Thank you for using BrainMass.com. I hope that this solution helps you with your assignment.

    In general, pass through items are separately stated when they are outside of the normal course of business. The following are two frequent examples:

    Interest income is not required to operate a business and it is therefore separately stated and categorized as portfolio income rather than business income.

    Charitable contributions are a second example of a separately stated expense because, again, they ...

    Solution Summary

    This 288 word cited solution clearly explains why certain pass-through items are separately stated and provides some examples for better understanding. Additionally, this solution includes a complete list of reference sources for further investigation into the topic.