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The internal rate of return (IRR) rule will agree with the Net Present Value rule even when positive cash flows precede negative cash flows.
Self-Employment Income
Earnings derived from one's own business, professional practice, or freelance work, subject to tax and self-employment contributions.
Adjusted Basis
The value of an asset for tax purposes, calculated by modifying its original cost by factors such as depreciation or improvements.
Accumulated Depreciation
The total depreciation expense charged against an asset over its useful life.
Trade or Business Expenses
Trade or business expenses are the costs of carrying on a trade or business, and these expenses are usually deductible if the business operates to make a profit.
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