The simple way to calculate the amount of your home office deduction is to measure the area you use to do your work. Multiply the square footage of your workspace by $5 to determine your home office deduction. The most you can claim using this simplified method is $1,500 (300 square fe...
a loss over $25,000, the amount that exceeds the threshold is “suspended until the property is sold or passive income is generated,” says Alton Bell, an enrolled agent and founder of Bell Tax Services in Chicago. In other words, you can carry the loss forward to deduct in future ...
Whatever the number may be, you can apply that percentage to your auto expenses for the year. For those of you who hate crunching numbers, I’m sorry. I can’t completely remove math from your life. The IRS provides two ways to calculate this deduction. First, track your actual expenses...
When an exporter and its IC-DISC enter an AR-factoring agreement, the exporter sells its AR at a discount to the IC-DISC. The IC-DISC recognizes the discount as interest income, and the exporter is then able to deduct the loss that results from the sale of its AR. As a result, the...