If your business pays out large lump-sum commissions when ending a salesperson or vendor relationship, you may be able to deduct that full amount in the year you pay it rather than capitalizing it over several years.

Here’s how this works in a real-world example.

For Business Owners: What You Need to Know

You operate an investment advisory firm that reports income on the cash method. You charge clients a 1 percent annual fee on assets under management and pay your originating vendor ... Log in to view full article.