Respuesta :
Follow the IRS method for financial well being.
What is IRS method?
- The IRS method uses the ration of days rented divided by the total days used (rental days + personal days).
- In the workpapers for your prior year return, look for Schedule E Worksheet for your Rental Property. Rental days and Days of personal use appear in the top section.
- The most commonly used IRS accounting methods are the cash method and the accrual method.
- Under the IRS cash method, you generally report income in the tax year you receive it, and deduct expenses in the tax year in which you pay the expenses.
- IRS compares sources of cash on the left and cash expenditures on the right, which on paper looks a lot like budgeting. What the auditors are trying to determine is if taxpayers have sufficient funds for their personal living expenses.
To learn more about the IRS method, refer to: https://brainly.com/question/17012188
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