Home Business Tax Deductions: Keep What You Earn, 8th Edition

Title Page......Page 4
Table of Contents......Page 8
Intro: Your Home Business Tax Deductions Companion......Page 13
1. Some Tax Basics......Page 15
How Tax Deductions Work......Page 16
How Businesses Are Taxed......Page 19
What Businesses Can Deduct......Page 26
Adding It All Up: The Value of Tax Deductions......Page 28
2. Is Your Home Business Really a Business?......Page 35
Proving That You Are in Business......Page 36
Tax Consequences of Engaging in a Hobby......Page 46
Investing and Other Income-Producing Activities......Page 47
3. Getting Your Business Up and Running......Page 57
What Are Start-Up Expenses?......Page 58
When Does a Business Begin?......Page 63
If Your Business Doesn’t Last 15 Years......Page 65
Expenses for Businesses That Never Begin......Page 67
Avoiding the Start-Up Tax Rule’s Bite......Page 68
4. Home Business Operating Expenses......Page 71
Requirements for Deducting Operating Expenses......Page 72
Operating Expenses That Are Not Deductible......Page 80
How to Report Operating Expense Deductions......Page 81
5. Deducting Long-Term Assets......Page 83
Long-Term Assets......Page 85
Section 179 Deductions......Page 96
Bonus Depreciation......Page 107
Regular Depreciation......Page 112
Tax Reporting and Record Keeping......Page 127
Leasing Long-Term Assets......Page 129
6. The Home Office Deduction......Page 133
Qualifying for the Home Office Deduction......Page 134
Corporation Employees......Page 147
Calculating the Home Office Deduction......Page 148
IRS Reporting Requirements......Page 166
Audit-Proofing Your Home Office Deduction......Page 167
7. Eating Out and Going Out: Deducting Meal and Entertainment Expenses......Page 169
What Is Business Entertainment?......Page 170
Deducting Entertainment Expenses......Page 172
Calculating Your Deduction......Page 178
Reporting Entertainment Expenses on Your Tax Return......Page 185
8. Getting Around Town: Car and Local Travel Expenses......Page 187
Deductible Local Transportation Expenses......Page 188
The Standard Mileage Rate......Page 191
The Actual Expense Method......Page 195
How to Maximize Your Car Expense Deduction......Page 211
Reporting Transportation Expenses on Your Tax  Return......Page 213
When Clients or Customers Reimburse You......Page 215
9. Leaving Town: Business Travel......Page 217
What Is Business Travel?......Page 218
Deductible Travel Expenses......Page 226
How Much You Can Deduct......Page 228
Maximizing Your Business Travel Deductions......Page 240
Travel Expenses Reimbursed by Clients or Customers......Page 242
10. Inventory......Page 245
What Is Inventory?......Page 246
Maintaining an Inventory......Page 249
Deducting Inventory Costs......Page 251
IRS Reporting......Page 257
11. Hiring Help: Employees and Independent Contractors......Page 259
Employees Versus Independent Contractors......Page 260
Tax Deductions for Employee Pay and Benefits......Page 264
Reimbursing Employees for Business‑Related Expenditures......Page 274
Employing Your Family or Yourself......Page 280
Tax Deductions When You Hire Independent Contractors......Page 290
12. What If You Get Sick? Deducting Medical Expenses......Page 295
The Health Care Reform Act......Page 296
The Personal Deduction for Medical Expenses......Page 299
Deducting Health Insurance Premiums......Page 300
Tax Credits for Employee Health Insurance......Page 308
Medical Reimbursement Plans......Page 312
Health Savings Accounts......Page 321
13. Deductions That Can Help You Retire......Page 333
Why You Need a Retirement Plan (or Plans)......Page 335
Individual Retirement Accounts (IRAs)......Page 338
Employer IRAs......Page 344
Keogh Plans......Page 346
Solo 401(k) Plans......Page 348
14. More Home Business Deductions......Page 351
Advertising......Page 353
Business Bad Debts......Page 355
Casualty Losses......Page 361
Charitable Contributions......Page 365
Dues and Subscriptions......Page 366
Education Expenses......Page 367
Gifts......Page 370
Insurance for Your Business......Page 371
Interest on Business Loans......Page 373
Legal and Professional Services......Page 378
Taxes and Licenses......Page 379
15. Record Keeping and Accounting......Page 385
Basic Record Keeping for Tax Deductions......Page 386
Records Required for Specific Expenses......Page 399
How Long to Keep Records......Page 413
What If You Don’t Have Proper Tax Records?......Page 415
Accounting Methods......Page 416
Tax Years......Page 425
16. Claiming Tax Deductions for Prior Years......Page 427
Reasons for Amending Your Tax Return......Page 428
Time Limits for Filing Amended Returns......Page 432
How to Amend Your Return......Page 435
How the IRS Processes Refund Claims......Page 436
17. Staying Out of Trouble With the IRS......Page 437
What Every Home Business Owner Needs to Know About the IRS......Page 438
Ten Tips for Avoiding an Audit......Page 446
18. Help Beyond This Book......Page 453
Secondary Sources of Tax Information......Page 454
The Tax Law......Page 461
Consulting a Tax Professional......Page 469
Index......Page 473
More Tax Resources at Nolo.com......Page 0
Keep Up to Date......Page 493
Online Legal Forms......Page 495
Lawyer Directory......Page 496