Small business taxes

Title Page
Copyright Page
Table of Contents
Introduction
	About This Book
	Foolish Assumptions
	Icons Used in This Book
	Beyond the Book
	Where to Go from Here
Part 1 Understanding Small Business Taxes
	Chapter 1 Small Business Taxes 101
		Valuing Year-Round Tax Planning
			Factoring taxes into small business decisions
			Checking out common tax mistakes
		Noting How Corporate and Individual Tax Reform Impacts Small Business
			Checking out corporate income tax rate reduction and simplification
			Reducing individual income tax rates
			Noting 20 percent deduction for pass-through entities
			Enjoying better equipment expensing rules
			Increasing maximum depreciation deduction for automobiles
			Limiting interest deductions
			Reducing meal and entertainment deductions
			Eliminating the health insurance mandate
			Revising rules for using net operating losses
		Considering the SECURE ACT of 2019 and COViD-19 Relief Tax Acts
		Contemplating Potential Upcoming Tax Law Changes
		Understanding the Different Types of Taxes You Pay and Your Tax Rates
			Defining total taxes and taxable income
			Your marginal income tax rate for federal income taxes
			State income taxes
			Corporate income tax rates
			Employment (payroll) taxes
			Sales taxes
	Chapter 2 Making Important Business Decisions
		Choosing Your Business Entity
			Sole proprietorships
			Deciding whether to incorporate
			One step further: S corporations
			Partnerships
			Limited liability companies (LLCs)
		Valuing Employee Benefits
			Retirement plans
			Health insurance plans
			Other benefits
			Benefits that are deductible for corporation owners
	Chapter 3 Retirement Accounts and Investments for Small Businesses
		Beginning with Retirement Account Basics: Tax Breaks, Penalties, and Saving Guidelines
			Instant rewards: Upfront tax breaks
			Ongoing tax breaks on your investment earnings
			Additional tax credits for lower-income earners
			Retirement account penalties for early withdrawals
			Guidelines for saving (but not excessively)
		Surveying Your Retirement Account Options
			Maximizing your retirement plan’s value
			Checking out your choices
		Developing Realistic Investment Return Expectations
			Estimating your investments’ likely future returns
			Compounding your returns
		Selecting Top-Notch Investments for Your Retirement Account
			Considering fund advantages
			Maximizing your chances for fund investing success
			Understanding and using index funds
			Considering exchange-traded funds
			Using asset allocation in your retirement fund portfolio
			Selecting the best stock funds
				U.S. stock funds
				International stock funds
			Investing in the best exchange-traded funds
			Balancing your act: Funds that combine stocks and bonds
			Finding the best bond funds
				The dangers of yield-chasing
				Recommended short-term bond funds
				Recommended intermediate-term bond funds
				Recommended long-term bond funds
	Chapter 4 Real Estate and Your Small Business
		Deciding Whether to Work out of Your Home
			Researching local ordinances and issues
			Controlling costs
			Separating your work life from your personal life
			Doing a cost comparison
		Leasing Space for Your Business
			Leaning toward leasing
			Leasing burdens of retail businesses
			Negotiating a lease
		Buying Business Property
			Taking stock of your financial situation
			Doing a rent-versus-buy analysis
			Evaluating leases as a real estate investor
	Chapter 5 Estate Planning
		Determining Your Estate’s Tax Concerns
			Understanding the federal estate tax exemption
			Figuring out your taxable estate
			Examining federal estate tax rates
			Surveying state estate tax rules
			Surveying special estate tax treatment afforded small businesses
		Reducing Expected Estate Taxes with a Few Strategies
			Giving away your assets
			Leaving all your assets to your spouse
			Buying cash-value life insurance
			Setting up trusts
			Getting advice and help
Part 2 Ongoing Tax Jobs
	Chapter 6 Keeping Track of Your Small Business Revenues and Costs
		Establishing an Accounting System for Your Business
		Keeping Good Tax Records for Your Small Business
	Chapter 7 Form 1040 Filing Options
		Sizing Up the New and Improved Form 1040
		Tackling the Income Lines
			Line 1: Wages, salaries, tips, and so forth
			Line 2a: Tax-exempt interest
			Line 2b: Taxable interest
			Lines 3a and 3b: Qualified dividends and ordinary dividends
			Lines 4a and 4b: IRA distributions and taxable amount
			Lines 5a and 5b: Total pensions and annuities
			Lines 6a and 6b: Social Security benefits
			Line 7: Capital gain (or loss)
			Line 8: Other income from Schedule 1, line 9
			Line 11: Adjusted gross income
			Line 12a: Standard deduction or itemized deductions (from Schedule A)
			Line 13: Qualified business income deduction
		Schedule 1: Additional Income and Adjustments to Income
			Line 3: Business income (or loss)
			Line 4: Other gains (or losses)
			Line 5: Rental real estate, royalties, partnerships, S corporations, trusts, and so on
			Line 6: Farm income (or loss)
			Line 7: Unemployment compensation
			Line 8: Other income
		Adjustments to Income
			Line 11: Educator expenses
			Line 12: Certain business expenses of reservists, performing artists, and some government officials
			Line 13: Health savings account deduction
			Line 15: Deductible part of self-employment tax
			Line 16: Self-employed SEP, SIMPLE, and qualified plans
			Line 17: Self-employed health insurance deduction
			Line 20: IRA deduction
			Line 21: Student loan interest deduction
		Nonrefundable Credits: Schedule 3
			Line 1: Foreign tax credit
			Line 2: Credit for child and dependent care expenses
			Line 3: Education credits
			Line 4: Retirement savings contributions credit
	Chapter 8 Schedule C: Profit or Loss From Business
		Detailing Schedule C
		Getting the Basics Down
			Accounting methods
			Material participation
		Part I: Income
			Line 1: Gross receipts or sales
			Line 2: Returns and allowances
			Line 4: Cost of goods sold
			Line 6: Other income
		Part II: Expenses
			Line 8: Advertising
			Line 9: Car and truck expenses
			Line 10: Commissions and fees
			Line 11: Contract labor
			Line 12: Depletion
			Line 13: Depreciation
			Line 14: Employee benefit programs
			Line 15: Insurance (other than health)
			Line 16a: Mortgage interest
			Line 16b: Other interest
			Line 17: Legal and professional services
			Line 18: Office expense
			Line 19: Pension and profit-sharing plans
			Lines 20a and b: Rent or lease
			Line 21: Repairs and maintenance
			Line 22: Supplies
			Line 23: Taxes and licenses
			Lines 24a and b: Travel and meals
			Line 25: Utilities
			Line 26: Wages
			Line 27: Other expenses
			Line 30: Form 8829
			Lines 32a and b: At-risk rules
	Chapter 9 The Business Use of Your Home
		Checking Out the New, Simplified Home Office Deduction
		Filling Out Form 8829
			Recognizing who can use Form 8829
			Measuring the part of your home used for business
			Figuring your allowable home office deduction
			Determining your home office’s depreciation allowance
			Carrying over what’s left
		Understanding the Downsides to Home Office Deductions
			Audit risk and rejection of repeated business losses
			Depreciation recapture when selling a home with previous home office deductions
	Chapter 10 Estimated Taxes, Self-Employment Taxes, and Other Common Forms
		Form 1040-ES: Estimated Tax for Individuals
			Comparing the safe harbor method to the 90 percent rule
			Completing and filing your Form 1040-ES
			Paying estimated taxes on or through the IRS website
		Keeping Current on Your Employees’ (and Your Own) Tax Withholding
			Form W-4 for employee withholding
			Tax withholding and filings for employees
		Schedule SE: Self-Employment Tax
		Form 8889: Health Savings Accounts (HSAs)
			Understanding how HSAs work and who can use them
			Completing Form 8889
Part 3 Getting Help
	Chapter 11 Dealing with Notices and Audits
		Understanding the Basics You’ll Find on an IRS Notice
		Assessing Assessment Notices
			Income verification and proposed changes to your tax return: Forms CP2501 and CP2000
			Request for your tax return: Forms CP515 and CP518
			Backup withholding notice
			Federal tax lien notice: Form 668(F)
		Handling Non-Assessment Notices
			Paying interest on additional tax
			Receiving a delinquent tax return notice
		What You Should Know about Audits
			Surviving the four types of audits
			Prepping for an audit
			Winning your audit
			Understanding the statute of limitations on audits
		Correcting IRS Errors
			Keeping your correspondence short and sweet
			Sending a simple response to a balance due notice
			Getting help from a taxpayer advocate
		Amending a Return
			More expenses than income (net operating losses)
			The tax benefit rule
		Taking Action Even When You Can’t Pay Your Taxes
		Reducing Your Chances of Being Audited
			Declare all your income
			Don’t itemize
			Earn less money
			Don’t cheat
			Don’t cut corners if you’re self-employed
			Double-check your return for accuracy
			Stay away from back-street refund mills
	Chapter 12 Keeping Up with and Researching Tax Strategies and Rules
		The Benefits of Preparing Your Own Return
		Using IRS Publications
		Buying Software
		Accessing Internet Tax Resources
			Going right to the source: The IRS
			Utilizing tax preparation sites
			Checking out TaxTopics.net
			Finding out more through research sites
		Hiring Help
	Chapter 13 Paying for Tax Help
		Deciding to Hire Tax Help
			Unenrolled preparers
			Enrolled agents
			Certified public accountants
			Tax attorneys
			Who’s best qualified?
		Finding Tax Advisors
		Interviewing Prospective Tax Advisors
			What tax services do you offer?
			What are your particular areas of expertise?
			What other services do you offer?
			Who will prepare my return?
			How aggressive or conservative are you regarding interpreting tax laws?
			What’s your experience with audits?
			How does your fee structure work?
			What qualifies you to be a tax advisor?
			Do you carry liability insurance?
			Can you provide references of clients similar to me?
Part 4 The Part of Tens
	Chapter 14 Ten+ Useful Apps and Software Packages for Small Business Tax Issues
		Tracking Expenses with Expensify
		Processing Sales with Square
		Managing Transactions with EMS+
		Marking Miles with MileIQ
		Managing Your Accounting with QuickBooks
		Handling Accounting and Invoicing with FreshBooks
		Preparing Taxes with TurboTax Self-Employed
		Completing Taxes with H&R Block Tax Preparation and Filing Software
	Chapter 15 Ten Often Overlooked Tax Reduction Opportunities
		Invest in Wealth-Building Assets
		Fund Some Retirement Accounts
		Contribute to a Health Savings Account
		Work Overseas
		Calculate Whether a Deduction Is Worth Itemizing
		Trade Consumer Debt for Mortgage Debt
		Consider Charitable Contributions and Expenses
		Scour for Self-Employment Expenses
		Married Couples Should Crunch the Numbers on Filing Separately
		Tax Breaks for Minority Owned Businesses and Those in Low-Income Areas
	Chapter 16 Ten Resources to Turn to After Reading This Book
		To Develop a Good Business Plan and Improve Your Small Business
		To Whip Your Finances into Shape
		To Select the Best Business Entity
		To Set Up an Accounting and Financial Management System
		To Hone Your Investment Savvy for Your (and Your Employees’) Retirement Funds
		For Help with Payroll Regulations and Employee Tax Withholdings
		To Dig Deeper into IRS Rules and Regulations
		To Deal with IRS Collection Efforts
		For More Detailed Advice about All Aspects of Your Income Tax Return
		For Assistance in Preparing Your Income Tax Return
Index
About the Author
EULA