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Returning Member
posted Oct 13, 2023 5:16:17 PM

Tennessee Excise tax

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.

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3 Replies
Level 15
Oct 13, 2023 8:37:22 PM

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Returning Member
Oct 21, 2023 10:27:59 PM

Level 13
Oct 22, 2023 4:16:43 PM

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.