vince

Selling your home

can sometimes result in very large long term capital gains you can exclude $250k of those gains if for the last 2 years prior to the date of sale you didn't exclude gains from another sale during t...

  • Updated 4 months ago by vince
Mutual Funds

you're responsible for paying income tax on your share of the net capital gains by the fund your portion of the gains will be reported annually on Form 1099-DIV your capital gains can vary signific...

  • Updated 4 months ago by vince
Chapter 5: Capital Gains and Losses

A capital gain is simply the difference in what you sold something (eg shares) for and what you bought it for (also called the "cost basis" for that asset). Example: You buy 5 shares of a stock for...

Passive Income

Passive income is: Income from a business you do not materially participate in Rental income (even if you materially participate in, unless you're a real estate professional) It's taxed like intere...

  • Updated 4 months ago by vince
IKEA Kitchen Planning

You can design and get a great kitchen from IKEA delivered to your home. I think it's a lot easier, nicer, and cheaper than what most people assume. And the fact that it's IKEA means that the cabin...

  • Updated 4 months ago by vince
Dividend Income

like interest income dividend income is not subject to social security and medicare taxes often has lower income tax rates than other types of income if it meets certain requirements it will be a "...

Interest Income

most interest income (for example from a savings account) is subject to normal income tax rates but not social security and medicare taxes interest income is reported on Form 1099-INT some interest...

  • Updated 4 months ago by vince
Self Employment earnings

subject to the same income tax rates as wages and salaries instead of being subject to normal social security and medicare payroll taxes self employment earnings are subject to the self-employment ...

  • Updated 4 months ago by vince
Salary and Wages

this is the majority of income for most people taxed at normal income tax rates and normal social security and medicare taxes if you're an employee this will be reported to you and the IRS on Form ...

  • Updated 4 months ago by vince
Chapter 4: Taxable Income

Calculation of taxes is also affected by the type of income, each of which has it's own tax treatment Earned Income (salary, wages, and earnings from self-employment) Interest Income Dividend Incom...

Chapter 3: Your Refund

It's just the amount you paid (throughout the year before taxes are due) minus how much you actually owe. If the amount you paid is less then you don't get a refund -- you send money to the IRS. Th...

  • Updated 4 months ago by vince
Chapter 2: Deductions vs Credits

Deductions reduce your taxable income Credits reduce your tax Deductions Adjustments to income Itemized deductions Total Income - Adjustment to income deduction = Adjusted gross income - max(S...

  • Updated 4 months ago by vince
Chapter 1: Income Tax: It's Progressive!

If you're in the 22% tax bracket it does not mean all your income is taxed at 22% https://www.nerdwallet.com/blog/taxes/federal-income-tax-brackets Your tax bracket depends on your taxable income a...

  • Updated 4 months ago by vince
Taxes Made Simple

https://www.amazon.com/Taxes-Made-Simple-Income-Explained/dp/0981454216

Positive Rheumatoid Factor

"The first thing to say is this: don't panic! The test is not so accurate that its result clearly means anything at all! Depending on your symptoms and the reason the test was ordered, the importan...

QuickBooks Contra Accounts

Setup Accumulated Depreciation in Quickbooks online Go to Settings ⚙ and select Chart of Accounts. Select New. From the Account Type ▼ drop-down menu, choose same category as the asset (fixed asset...

  • Updated 4 months ago by vince
Chapter 11: Depreciation of Fixed Assets

When an asset is purchased that will last more than one year the cost of the asset is not counted as an expense. Instead the cost is spread over many years using depreciation. In Straight-Line Depr...

Contra Accounts

"Contra means opposite. Contra accounts are linked with another account, and have an opposite balance. The usual pattern is gross amount minus the amount in the contra account is net amount. Let’s ...

Chapter 9: Cash vs Accrual

To be GAAP complaint you must use Accrual method. The cash method records sales when cash is received and expenses when cash is paid. This can distort the true situation, for example if a business...

Trial Balance

Jut a list showing the balances of every general ledger account at a certain time. This is typically prepared at the end of a period of a period and before preparing financial statements. It's purp...

  • Updated 4 months ago by vince