You can also claim a net capital loss deduction of up to $3,000 against the rest of your income and get a lower AGI. If you have net losses greater than $3,000, the excess will be carried forward to the following year. Unused capital losses can be carried forward indefinitely.Read More →
6-1 Why is the distinction between deductions for AGI and deductions from AGI important for individuals? Deductions for AGI reduce the taxpayer’s gross income by the full amount of the deduction even if the standard deduction is used. … Expenses incurred in producing rental income are deductions FOR AGI. AreRead More →
The two main types of deductions are itemized deductions and the standard deduction. The standard deduction is the same for all taxpayers and is set by the IRS. The amount varies depending on your filing status, and it is also regularly adjusted for inflation. What is the difference between deductionsRead More →