Full Description

Helping the reader understand how to run a profitable and honest business while minimizing taxes is the goal of Tax Smarts for Small Business. Following its tax-saving strategies can give the small business owner year-round tax-saving opportunities, as well as having all your tax-time questions answered.

Accessible by anyone, it provides the reader with the latest IRS rules and answers everyday tax-related questions. It explores the IRS’s definition of income and how to lower yours through expense deductions, tax credits and depreciation. It also answers the frequently asked questions surrounding withholding and paying taxes—a trouble area for many small businesses. Its extensive glossary of financial and tax terms makes it an easy-to-understand and essential reference for every small business owner’s bookshelf.

Table of Contents

Introduction

Chapter 1: Income
Realizing Income
Constructive Receipt
Assignment of Income
Method of Accounting

Chapter 2: Gross Income
Compensation for Services
Business Income
Gain from Dealings in Property
Capital Gains and Losses
Determining Whether Property is a Capital Asset
Deferring Recognition of Capital Gains
Conversions of Property
Reporting Capital Gains and Losses
Interest
Rents
Royalties
Dividends
Contents
Distributive Share of Partnership Income
Loans
Specifically Excluded Sources of Income

Chapter 3: Adjusted Gross Income
Losses from Sale or Exchange of Property
Expenses Related to Rents and Royalties
Trade and Business Deductions
Deductible Employees’ Expenses
Nonreimbursed, Employee Business Expenses

Chapter 4: Home Office Expense
Qualifying Business Purposes
Regular, but not Exclusive
Allocating Percentage of Use
Eligible Expenses
Drawbacks to Taking the Deduction
Special Rules
Limitations

Chapter 5: Nonbusiness Deductions for the Self-Employed
Self-Employment Tax
Health Insurance Deduction
Retirement Plans

Chapter 6: Losses and Bad Debts
Losses on Sale or Exchange of Property
Casualty and Theft Loss
Net Operating Losses
Passive Losses
Bad Debt

Chapter 7: Taxable Income
Categories of Deductions
Itemized Deductions
Exemptions

Chapter 8: Taxes
Individual Federal Income Taxes
Alternative Minimum Tax
FICA Taxes—Social Security and Medicare Taxes
Self-Employment Tax
Corporate Federal Income Taxes

Chapter 9: Tax Credits
General Business Credit
Personal Credits
Retirement Savings Contributions
Other Nonrefundable Credits
Refundable Credits
Order of Application of Tax Credits

Chapter 10: Tax Considerations in Entity Selection
Sole Proprietorships
Partnerships
Joint Ventures
Limited Partnerships
Limited Liability Partnerships
Family Partnerships
Corporations
Professional Corporations
Limited Liability Companies
Family Limited Liability Companies

Chapter 11: Retirement Plans
Individual Retirement Arrangements
Roth IRAs
Simplified Employee Pension Plans
SIMPLE IRAs
401(k) Plans
Other Retirement Plans

Chapter 12: Withholding Taxes
Withholding Employee Taxes
Amount to Withhold
Payment of Withholding Taxes
Filing Appropriate Returns
Estimated Tax Payments

Glossary
Index
About the Author

Excerpt

Editorial Reviews

Customer Reviews

Customer Reviews: