What “How to Calculate Imputed Income Tax” Really Means (And the Answer Up Front) When a payroll manager first asked me how to calculate imputed income tax, I gave the textbook answer: “It’s the fair market value of a non-cash…
How to Calculate Net Operating Loss Carryover (The Direct Answer) To calculate your net operating loss carryover, start with your prior-year ending NOL balance, add any current-year NOL generated, then subtract the NOL amount you actually used this year—which is…
How Do I Calculate the Foreign Earned Income Exclusion? (The Real Formula) When someone asks me “how do I calculate the foreign earned income exclusion,” I give them the prorated formula first, not the IRS pub number. For 2025, the…
If you’re asking “s corp vs llc which is better for taxes,” the honest answer is: it depends on your net profit, state fees, and how much you can pay yourself a reasonable salary. For most solo service businesses earning…
How to Calculate Section 179 Deduction by Hand in 2025–2026 To calculate the Section 179 deduction, you start with total qualifying asset costs, apply the $2.5 million maximum, subtract $1 of deduction for every $1 spent above $6.5 million (the…
The Core Formula and Why Most Calculations Go Wrong The fastest answer to how to calculate business tax rate is this: take your total tax expense (federal, state, and local) and divide it by your pre-tax net income, then multiply…
To calculate your bonus after tax manually, start with your gross bonus and subtract mandatory withholding. Under the flat supplemental wage method, deduct 22% federal income tax, 6.2% Social Security (up to the annual wage base) and 1.45% Medicare, plus…
How to Calculate Depreciation Recapture Tax: The Practitioner’s Core Formula To calculate depreciation recapture tax, first compute your adjusted basis: original cost minus accumulated depreciation that was allowed or allowable. Next, find your realized gain: selling price minus selling expenses…
How to Calculate Put Call Parity: The Core Equation and a Live Example To calculate put-call parity, start with the relationship that links a European call, a European put, the underlying stock, and a risk-free bond. The base formula is…
What “Dilute Shares by 10%” Really Means If you’re trying to figure out how to calculate stock dilution, start with the only formula that matters for ownership: post‑money ownership % = your shares ÷ (existing shares + newly issued shares).…