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Are my business-related meal expenses deductible?
Contributed by: KelliP, FreeTaxUSA Agent, Tax Pro Owning a business and understanding which expenses are deductible can be overwhelming. When you’re self-employed, business related meal expenses are typically deducted and reported on Schedule C, Profit or Loss from Business (Sole Proprietorship) Most meal expenses are…
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What do I need to know about taxes when starting an LLC?
Contributed by: AnthonyS, FreeTaxUSA Agent, Tax Pro So, you’re thinking of starting your own business and forming an LLC. This is an exciting step! But once you’ve filed the paperwork with your Secretary of State, you might wonder: What now? Whether you’re a solo entrepreneur or forming an LLC with others, it’s important…
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How do I report the sale of my home if it was also used as a rental?
Contributed by: JanaA, FreeTaxUSA Agent, Tax Pro Selling your home can be a significant financial event, and in many cases, homeowners may qualify to exclude a portion of the gain from their taxable income. The IRS provides a home sale exclusion if certain ownership and use tests are met. Under IRS Publication 523, you may…
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Reporting income from an online product review business
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro Online businesses, as well as opportunities to start one, continue to grow. One emerging opportunity is conducting online product reviews. Before making purchases, buyers often look for products with good reviews. To promote their products, retail sellers are constantly…
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How do I report income from renting to a family member at a rate below the fair market value?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro Your son recently got married, and you allowed the newlyweds to move into your rental property when it became vacant. Renting to a relative can be a great way to help family members while also earning some income. This option might be particularly appealing if you believe a…
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What are per diem expenses for business?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro You may have heard the term per diem before, but it may be a little unclear what that means. Per diem is Latin for ‘by the day’ or ‘for each day’ and is, in the simplest terms, daily allowance of expenses for an employee for things like food, lodging and incidentals when…
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What is depreciation recapture, and why does it matter 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…