U3 IP1.pptx - Individual Income Deductions ACCT 430 \u2013 2001B-01 Crystal Rueda Calculation of net business income Income Calculation \u2022 Your business

U3 IP1.pptx - Individual Income Deductions ACCT 430 –...

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Individual Income & Deductions ACCT 430 – 2001B-01 Crystal Rueda 03/12/20
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Calculation of net business income: Income Calculation Your business income is calculated, starting with gross receipts or gross sales. Returns and allowances are deducted. Then, cost of goods sold is calculated, for businesses that sell products. The result is the gross profit (gross business income). Other income is also listed. For example, your business may have income from interest, tax credits, or other non-sales sources.
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Expenses Calculations Expenses are listed, in specific categories, in alphabetical order. There is a category for miscellaneous expenses too. The result if total expenses before use of your home (called tentative profit or loss). If you have a home bases business, you can do a separate calculation for home business expenses, and add those to the tentative profit/loss. (There are two methods to calculate these expenses).
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Net Profit or Loss Calculation:
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  • Fall '14
  • DennisMcguckian
  • Taxation in the United States, Crystal Rueda

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