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What is depreciation recapture, and why it matters at tax time?
Contributed by: CoryF, FreeTaxUSA Agent, Tax Pro You sold your business property and are filing your taxes, only to find out you owe a lot of money in capital gains. The most likely reason is depreciation recapture. This article will explain and/or prepare you for the reality of depreciation recapture. When you depreciate…
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What should be reported as cost of goods sold on Schedule C?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Whether you run an online boutique or sell homemade goods at local markets, understanding what qualifies as cost of goods sold on Schedule C is important for anyone who makes or resells products. What counts as cost of goods sold? Cost of goods sold (COGS) refers to…
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How do I report mined cryptocurrency and capital gains from crypto sales?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro The IRS requires you to report digital currency on your tax return each year if you’ve received, sold, exchanged, or otherwise acquired cryptocurrency or other digital assets. If you mine cryptocurrency, there are different reporting requirements when you first acquire the…
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How do I report depreciation for a rental that was repeatedly converted between rental and personal use?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro There are many reasons people may choose to convert a home into rental property instead of selling. For example, during the Great Recession, housing prices dropped below what many people had paid for their properties. In some cases, homeowners had to decide between…
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How do I report rental income and expenses for a co-owned property?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Many people have rental properties that are co-owned with a group of people. Whether the group is your family or a pool of investors, knowing how to report rental income, expenses, and depreciation for co-owned property is crucial to filing a correct tax return. Different…
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How do I enter my 1099-K for business income?
Contributed by: Daniel_L, FreeTaxUSA Agent In this article, we’ll discuss the following topics: Basic Form 1099-K information Help to identify business income Use of Schedule C to report business income Directions for entering 1099-K business income; and Tip and extended example Form 1099-K Form 1099-K reports electronic…
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What counts as deductible travel expenses?
Contributed by: KelliP, FreeTaxUSA Agent, Tax Pro Knowing what travel expenses are deductible can be confusing such as meals, transportation, and lodging. As a self-employed individual, generally most, if not all, travel expenses can be deducted. Business travel expenses are reported on Schedule C. There are certain…
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What do I need to report from my 1099-K?
Contributed by: Daniel_L, FreeTaxUSA Agent Form 1099-K Form 1099-K reports electronic payments you received for goods or services through credit cards, debit cards, or any other third-party payment network like Venmo or PayPal. Your 1099-K filer or issuer records these transactions. When the threshold is met by dollar…
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How do I report a car rental as a business expense?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro The gig economy is a flexible labor market where individuals engage in temporary, project-based work. The gig economy has experienced huge growth over the last decade. Companies like Uber, Lyft, Uber Eats, DoorDash, and Amazon Flex, are just a few examples of this trend.…
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How do I report foreign rental property?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Reporting income from a rental property can be complicated. If your rental property is in a foreign country, there are a few additional steps and considerations. From foreign income and real estate taxes to depreciation methods and converting the currency from the foreign…