Taxpayers who sell their home don’t need to pay taxes on the sale — “in general.” “In general” is famous last words of the tax code. What if you’ve claimed a home-office deduction relating to your house? In that situation, it’s likely that some of your sale IS taxable. Let’s discuss. Review Let’s use an […]
Bonus depreciation, in tax terms, refers to an accelerated form of depreciation available on certain types of assets.
In tax and accounting terms, “income statement” refers to an accounting of a business’s revenue and expenses for a period of time. This is also often referred to as a “profit and loss” statement (“P and L” for short).
What does amortization mean?
MACRS refers to “modified accelerated cost recovery system,” which is the default depreciation method used for tax purposes.
In the tax world, an asset is generally refers to the purchase of something that will last for more than one year.
Glossary of tax terms: capital gain/capital loss
The handling of franchise fees on a tax return is not complicated but it’s also not intuitive.
For taxes, remember that you must allocate basis between the building and the land when you own a rental property.
Note: I wrote this post in 2012, so be aware of its age. However, the content in this post is still accurate and applicable all these years later. —– Kay Bell at the Don’t Mess with Taxes blog reminds us that there can be an unexpected, negative tax consequence to taking the home office deduction […]