Aloysia

Prepaid Expense: What It Is and How It Works.



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What is a prepaid expense? A prepaid expense is an advance payment for goods or services that will be received in the future. This type of payment is often made for items that are used on a regular basis, such as office supplies or insurance premiums. What is prepaid balance? A prepaid balance is an … Read more

Tax Preference Item Definition.



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A tax preference item is an item of income or deduction that gives a taxpayer a preferential tax treatment. The most common tax preference items are deductions for certain expenses, such as home mortgage interest and state and local taxes. Can you differentiate an AMT preference from an AMT adjustment? An AMT preference is an … Read more