Cch Business Owner's Toolkit Tax Guide 2003

by Jacksack, Susan M.; Gada, Paul N.

• ISBN13: 9780808008323
• ISBN10: 0808008323
• Edition: 5th
• Format: Paperback
• Copyright: 2003-01-01
• Publisher: Independent Pub Group

Summary

This clear and direct guide offers small business owners expert commentary on every step of the process of filing a sole proprietorship tax return. Whether owners tackle this task themselves or solicit the help of a professional, this resource offers analyses of individual income tax issues, an extensive glossary that demystifies tax lingo, and detailed discussions on issues of interest to small business owners, such as differentiating between personal and business expenses, using the best form of organisation for particular businesses, maximising deductions, and handling employee benefit plans on tax returns.

Table of Contents

Getting Started	p. 1
How To Use This Book	p. 3
What's New This Year	p. 7
Tax Calendar	p. 9
The Basics of Tax Planning	p. 13
Reducing Taxable Income	p. 14
Reducing Your Tax Rate	p. 14
Controlling the Due Date for Taxes	p. 15
Restrictions on Tax Planning	p. 17
Keeping Good Records	p. 19
Business-Related Records	p. 19
Special Deducation Rules	p. 21
Other Personal Records	p. 22
How Long Must Your Records Be Kept?	p. 23
Taxes and Your Business	p. 25
Forms of Business Organization	p. 27
Sole Proprietorships	p. 27
Partnerships	p. 28
Limited Liability Companies	p. 29
Corporations	p. 29
S Corporations	p. 31
Introducing the Schedule C	p. 33
Do You Need to File This Form?	p. 33
Identifying Your Business	p. 37
Accounting Methods and Tax Years	p. 41
Did You Materially Participate in the Business?	p. 44
Business Income	p. 47
Income Reported on Schedule C	p. 47
Computing Your Gross Profit	p. 51
Deductible Business Expenses	p. 55
Ordinary and Necessary Business Expenses	p. 56
Business vs. Personal Expenses	p. 56
Nondeductible Capital Expenditures	p. 59
Business Startup Costs	p. 61
Special Deduction Rules	p. 62
Taxes and Vehicles	p. 63
Business Travel Expenses	p. 72
Meal and Entertainment Expenses	p. 75
Business Gift Expenses	p. 77
Business-Related Education Expenses	p. 79
The Home Office Deduction	p. 79
Deductible Wages for Employees	p. 88
Employee Benefit Plans	p. 91
Retirement Plans for the Self-Employed	p. 93
Capital Assets and Depreciation	p. 99
You Must Follow the Rules	p. 100
Which Assets Can Be Depreciated?	p. 100
Depreciable Value of an Asset	p. 101
Writing Off Assets in the First Year	p. 103
When Does Depreciation Begin?	p. 107
Depreciation Methods	p. 109
Cars and Other Listed Property	p. 112
When Does Depreciation End?	p. 115
Claiming Your Depreciation Deductions	p. 115
Disposing of Capital Assets	p. 116
Reporting Sales of Assets	p. 123
Purchasing vs. Leasing	p. 123
Business Profit and Self-Employment Tax	p. 135
Self-Employment Tax	p. 135
Net Operating Losses	p. 139
Business Tax Credits	p. 141
Credits for Certain Taxes	p. 141
Credits Benefiting Disadvantaged Groups	p. 142
Credits Benefiting the Environment	p. 145
Credits for Certain Investments	p. 146
Claiming Federal Income Tax Credits	p. 148
Personal Tax Issues	p. 151
Filing Status and Exemptions	p. 153
Choosing Your Filing Status	p. 154
Who Must File a Return?	p. 159
Exemptions and the Dependency Test	p. 163
Phaseout of Exemptions for High-Income Families	p. 169
Filing Returns for the Deceased	p. 171
Employment Income and Related Deductions	p. 173
Employment Income	p. 173
Miscellaneous Forms of Income	p. 176
Farm Income	p. 180
Employee Business Expenses	p. 182
Deductible Moving Expenses	p. 187
The Credit for Child and Dependent Care	p. 191
Dependent Care Provided by Your Employer	p. 198
Real Estate	p. 201
The Home Mortage Interest Deduction	p. 201
The Deduction for Real Estate Taxes	p. 206
Buying a Home	p. 207
Selling Your Home	p. 212
Vacation Home Rentals	p. 215
Rental Real Estate Income and Expenses	p. 216
Sale of Rental Real Estate	p. 221
Investments	p. 223
Interest Income	p. 223
Dividends	p. 227
Foreign Investment Accounts and Trusts	p. 228
Stock, Bond, and Other Capital Asset Sales	p. 229
Income From Estates and Trusts	p. 238
Income from Partnerships, LLCs, and S Corporations	p. 239
Royalty Income	p. 240
Income from REMICs	p. 240
Investment Income of Your Minor Child	p. 240
Investment-Related Expenses	p. 242
Retirement	p. 245
Distributions from a Pension Plan or Annuity	p. 245
Lump-Sum Distributions	p. 248
Taxation of Social Security Benefits	p. 251
Individual Retirement Accounts (IRAs)	p. 251
Standard and Itemized Deductions	p. 259
The Standard Deduction	p. 259
Itemized Deductions	p. 260
Medical and Dental Expenses	p. 261
State and Local Taxes	p. 265
Interest	p. 266
Gifts to Charities	p. 266
Casualty and Theft Losses	p. 269
Miscellaneous Itemized Deductions	p. 274
The Limit on Itemized Deductions	p. 275
Tax Credits and Miscellaneous Issues for Families	p. 279
Alimony	p. 280
The Child Tax Credit	p. 282
Tax Benefits for Adoption	p. 284
Credit for the Elderly and Disabled	p. 286
Tax Breaks for Education	p. 288
The Earned Income Credit	p. 291
Calculating Your Tax	p. 301
Computing and Paying Income Tax	p. 301
The AMT	p. 305
Payroll Taxes on Household Employees	p. 306
Dealing With the IRS	p. 309
Due Dates for Tax Returns	p. 309
Estimated Tax Payments	p. 310
Interest and Penalties for Underpayment or Late Returns	p. 313
How to Handle an Audit	p. 314
Glossary of Tax Terms	p. 317
2002 Tax Forms	p. 321
Index	p. 413
Table of Contents provided by Rittenhouse. All Rights Reserved.