Rental Income Taxation If you rent a building, apartment, or house you will need to report that income on your taxes. What is rental income, what can you deduct, and how do you report it? We will answer those questions and more in this article. What Exactly is Rental Income? Rental income is any payments you receive in return for the leasing of your property. This is typically based on monthly rental earnings. Security [...]

Guide to Form 1120 A Form 1120 is a corporation tax return. A corporation uses one to report their credits, deductions, losses, gains, and income. It is also used to find out their tax liability and how much they owe. In this article, we will go over the basics of a Form 1120. Types of Applicable Organizations There are different types of organizations that file a Form 1120. These include the following: 1120-C: Cooperative [...]

20 Tax Deductions for the Self-Employed If you have 1099s and you file your business tax return as a Schedule C, there are tax deductions you may be missing out on. In this article, we will explore 20 tax deductions for the self-employed. 1. Start Up Costs To get your business up and operational, you will need to spend money to get things started. This could include things like market research, training new employees, [...]

Standard Deduction vs. Itemized Deductions A deduction is something the IRS offers to help maximize your refund or reduce your liability. It is an amount you can subtract from your Adjusted Gross Income to reduce the overall income subject to taxation. There are two types of deductions, the standard deduction and itemized deductions. In this article, we will go over the standard deduction vs. itemized deductions to determine which is best for you. Standard [...]

Above-the-Line Deductions There are both itemized and above-the-line deductions. They will affect your Adjusted Gross Income in different ways. In this article, we will go over the basics of above-the-line deductions. Adjusted Gross Income Before you can understand above-the-line deductions, you must understand Adjusted Gross Income. Your AGI includes your combined income from wages, business and rental income, capital gains, and unemployment. The number is used for many calculations on your tax return. For [...]

Home Office Deduction The home office deduction is available to small business owners who regularly and exclusively use a portion of their home for business related activities. This deduction is taken if you file a Schedule C. In this article, we will go over the basics of the home office deduction. The Basics You can claim the home office deduction as both a homeowner and a renter. Your dwelling can be a single family [...]