Anne is a self-employed electrician who reports her business income using the accrual method over a calendar year. On September 1st of this year, Anne paid $2,540 of interest on a loan. The interest accrues evenly over 20 months ($127 per month)from June 1st of this year through December 31st of next year. In addition, on September 1st Anne also paid $2,983 for 19 months of professional liability insurance ($157 per month). What amount of interest and insurance can Anne deduct this year?

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The Answer of Anne is a self-employed electrician who reports her business income using the accrual method over a calendar year. On September 1st of this year, Anne paid $2,540 of interest on a loan. The interest accrues evenly over 20 months ($127 per month)from June 1st of this year through December 31st of next year. In addition, on September 1st Anne also paid $2,983 for 19 months of professional liability insurance ($157 per month). What amount of interest and insurance can Anne deduct this year?

Anne Is a Self-Employed Electrician Who Reports Her Business Income