Small business taxes made easy : how to increase your deductions, reduce what you owe, and boost your profits

Cover
Title Page
Copyright Page
Dedication
Contents
Acknowledgments
Introduction: A Letter from Eva Rosenberg to You, the Business Owner
Lighten Up
How to Use This Book
Prologue: Update on the Latest Tax Laws
1 SMALL BUSINESS CHECKLIST
	Three Indicators Will Predict the Success of the Business
	So What Do You Need to Do?
	The Checklist in To-Do Order
	Resources
2 BUSINESS PLANS YOU KNOW AND TRUST
	Create a Business Plan
	Why You Need a Business Plan
	Real Business—Planned Losses
	General Benefits
	The Fine Line Between Success and Failure
	Exit Plans for Fun and Profit
	Let’s Not Fail Due to Success
	Knowing What to Do—When
	Outline of a Plan
	Rebalancing Your Business Plan for Tax Consequences
	Business Plan Books and Resources
	Resources
3 ENTITIES: SELECTING YOUR BUSINESS STRUCTURE
	Decisions, Decisions, Decisions
	What Do You Want to Be When You Grow Up?
	An Overview of Certain Tax Considerations Related to Entities
	Major Issues Related to Entities
	Entities, in All Their Glory
	A Brief Word About Nevada, Delaware, and Wyoming Corporations
	What About Nonprofits?
	Entities We’re Not Discussing
	All the Highlights in One Place
	Your Big Decision
	Resources
4 RECORD KEEPING
	Keeping Records Is a Pain
	Types of Accounting Systems
	Doing It by Hand
	The IRS Says It All
	Fiscal Year
	Accounting Styles
	Records You Must Keep
	How Long Should You Keep Records?
	Glossary of Bookkeeping Terms
	Resources
5 INCOME
	Money In, Money Out, Wave Your Hands All About
	A Capital Idea
	What Is Income?
	Timing of Income
	A Brief Explanation About “Accrual Basis”
	Sales Taxes Received—Are They Your Money?
	Income Rarely Reported
	The IRS Has a Cash Audit Guide
	Some 1099s Your Business Receives
	So What the Heck Is Income?
	Resources
6 COMMON DEDUCTIONS
	Rule of Thumb
	Universally Deductible
	It’s All About You
	Mixed-Use Assets
	Depreciation
	More Deductions Than You Can Imagine
	Resources
7 OFFICE IN HOME
	The Song Is Right! Let’s Stay Home
	It’s a Red Flag; It’s Just Asking for an Audit
	Frustrating Change to the Law Affecting Employees
	An Attractive Change to the Law Affecting Homeowners Only
	Simplify, Simplify
	Inner Space
	Two Critical Reminders
	Prove It, Baby!
	What Are Office-in-Home Expenses?
	When You Can’t Use Office-in-Home Deductions
	Evaluate Your Options
	A Final Note—and a Final Story
	Resources
8 VEHICLES: EVERYONE’S FAVORITE DEDUCTION
	Deducting Auto Expenses for Employees
	Deducting Auto Expenses for Business Owners
	Should I Lease or Buy?
	The Cons of Depreciation
	Give Yourself Credit
	Driving Home Conclusions
	Resources
9 EMPLOYEES AND INDEPENDENT CONTRACTORS
	Who Is an Employee?
	Protecting Yourself from Independent Contractor Claims
	What Are 1099-MISCs?
	Payroll and Payroll Taxes
	Payroll Across Entities
	Hiring Family Members
	Paying Payroll
	Preparing Payroll: Checks, Journals, Reports
	Reporting Payroll
	Employee Benefits
	Employee Ownership and Stock Options
	Summing up Employees
	Resources
10 OWNERS’ FRINGE BENEFITS, RETIREMENT, AND TAX DEFERMENT
	Fringe Benefits and Reimbursements
	Retirement Plans
	Tax-Deferred Opportunities
	Using the IRS to Your Advantage
	Resources
11 ESTIMATED PAYMENTS
	Estimated Payments Overview
	My Short Method
	Worst-Case Scenario
	Computing Your Estimated Installment Payments
	Paying the Tax
	Tips to Reduce Penalties for Underpayment of Estimated Tax
	Don’t Overpay Your Estimates If You’re in Trouble
	Resources
12 SPECIAL CONSIDERATIONS FOR ONLINE BUSINESSES—AND BUSINESSES THAT SELL ACROSS STATE LINES
	WWW = Who, What, Where
	What? I Thought There Was No Internet Tax
	Nexus
	Internet Sales Tax Issues
	Rents and Services—Domestic and Abroad
	Legal Issues on the Internet
	In the End
	Resources
13 TAX NOTICES, AUDITS, AND COLLECTION NOTES
	Dealing with Basic Tax Notices for Individual Returns
	IRS Audits
	What Will Happen During the Audit?
	Negotiating
	Audit Reconsiderations, Appeals, and Tax Court: Some Brief Words
	Owing Taxes
	How About Filing Bankruptcy?
	Summary of IRS Interactions
	Resources
Epilogue: Some Final Words of Advice—and Resources to Rely On
Index