Carry Learning Center

Capital gains are generally taxed as ordinary income by the IRS, although the tax rate on capital gains can be lower than the tax rate on ordinary income, depending on the circumstances and the jurisdiction. The holding time of a capital asset affects the tax rate applied to any capital gains realized from its sale. [...]

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A business tax deduction is an expense that a business can subtract from its taxable income when calculating its federal income tax liability. Deductions can reduce a business’ taxable income and lower the amount of taxes owed to the government each tax year. Here’s how it works: Calculates your business’ gross income, which is the total amount [...]

Adjusted Gross Income (AGI) is a financial term used to describe a taxpayer’s total income minus specific deductions. AGI is calculated by taking your gross income (total income from all sources) and subtracting any allowable tax deductions. This number is then used to determine how much of your income is subject to tax, and which [...]

When you’re filing your taxes, you have two options for taking deductions: standard or itemized. Standard deductions are easier to take since you simply subtract a set amount from your taxable income. However, some people may benefit more from itemized deductions, which requires you to list (and provide proof of) all eligible expenses during the [...]

The standard deduction is a flat amount that you can subtract from your income, while itemized deductions are specific expenses that you can deduct, but you must keep track of your expenses and provide documentation. The choice between claiming the standard deduction and itemizing your deductions will depend on which method gives you the greatest [...]

When you file your taxes, the IRS gives you two options for taking tax deductions. You can either take a standard or itemized deduction, but not both. A standard deduction is a set amount that’s determined by the IRS each year. If you choose the standard deduction, your deduction is predetermined and you can check [...]

In the US, there are two methods to calculate home office expenses: the Simplified Method and the Regular Method. Each method has its own rules and calculations, and pros and cons depending on your circumstances. Let’s go through them below. FEATURED COURSE Lorilyn Wilson teaches Taxes & Accounting Foundations For Business Owners Lorilyn Wilson, CPA, teaches you how [...]

The gift tax is a federal tax imposed on the transfer of property or assets from one person to another without receiving something of equal value in return. The person giving the gift (the donor) is usually responsible for paying the gift tax. The gift tax applies to both direct gifts (such as cash or [...]