Home Business Tax Deductions

by Fishman, Stephen

• ISBN13: 9781413317411
• ISBN10: 1413317413
• Edition: 9th
• Format: Paperback
• Copyright: 2012-11-30
• Publisher: Nolo

Summary

Keep your hard-earned money in your home business! Completely updated for 2012returns! Tax deductions are essential to any business, but even more so when your office is also your home. Don't spend thousands on an accountant -- turn to Home Business Tax Deductionsand do it yourself! Organized into categories of commonly-used deductions, Home Business Tax Deductionswill help you write off: - your home office - start-up and operating expenses - vehicles,meals, entertainment, and travel - health insurance and medical bills - inventory - equipment This edition of Home Business Tax Deductionsis completely updated with all the latest tax information, eligibility requirements, and deductions for 2012returns, including up-to-date information on how the latest laws could affect your home business.

Table of Contents

Your Home Business Tax Deductions Companion	p. 1
Some Tax Basics	p. 3
How Tax Deductions Work	p. 4
How Businesses Are Taxed	p. 7
What Businesses Can Deduct	p. 11
Adding It All Up: The Value of Tax Deductions	p. 14
Is Your Home Really a Business	p. 21
Proving That You Are in Business	p. 22
Tax Consequences of Engaging in a Hobby	p. 32
Investing and Other Income-Producing Activities	p. 33
Getting Your Business Up and Running	p. 41
What Are Start-Up Expenses?	p. 42
When Does a Business Begin?	p. 46
Claiming the Deduction	p. 48
If Your Business Doesn't Last 15 Years	p. 49
Expenses for Businesses That Never Begin	p. 50
Avoiding the Start-Up Tax Rule's Bite	p. 51
Home Business Operating Expenses	p. 53
Requirements for Deducting Operating Expenses	p. 54
Operating Expenses That Are Not Deductible	p. 62
How to Report Operating Expense Deductions	p. 63
Deducting Long-Term Assets	p. 65
Long-Term Assets	p. 67
Section 179 Deductions	p. 77
Bonus Depreciation	p. 88
Regular Depreciation	p. 92
Tax Reporting and Record Keeping	p. 106
Leasing Long-Term Assets	p. 108
The Home Office Deduction	p. 113
Qualifying for the Home Office Deduction	p. 114
Corporation Employees	p. 126
Calculating the Home Office Deduction	p. 127
IRS Reporting Requirements	p. 145
Audit-Proofing Your Home Office Deduction	p. 146
Eating Out and Going Out: Deducting Meal and Entertainment Expenses	p. 149
What Is Business Entertainment?	p. 150
Who You Can Entertain	p. 152
Deducting Entertainment Expenses	p. 152
Calculating Your Deduction	p. 158
Reporting Entertainment Expenses on Your Tax Return	p. 164
Getting Around Town: Car and Local Travel Expenses	p. 165
Deductible Local Transportation Expenses	p. 166
The Standard Mileage Rate	p. 169
The Actual Expense Method	p. 172
How to Maximize Your Car Expense Deduction	p. 188
Other Local Transportation Expenses	p. 190
Reporting Transportation Expenses on Your Tax Return	p. 190
When Clients or Customers Reimburse You	p. 192
Leaving Town: Business Travel	p. 195
What Is Business Travel?	p. 196
Deductible Travel Expenses	p. 203
How Much You Can Deduct	p. 205
Maximizing Your Business Travel Deductions	p. 217
Travel Expenses Reimbursed by Clients or Customers	p. 219
Inventory	p. 221
What Is Inventory?	p. 222
Maintaining an Inventory	p. 225
Deducting Inventory Costs	p. 227
IRS Reporting	p. 232
Hiring Help: Employees and Independent Contractors	p. 235
Employees Versus Independent Contractors	p. 236
Tax Deductions for Employee Pay and Benefits	p. 240
Reimbursing Employees for Business-Related Expenditures	p. 249
Employing Your Family or Yourself	p. 255
Tax Deductions When You Hire Independent Contractors	p. 265
What If You Get Sick? Deducting Medical Expenses	p. 269
The Health Care Reform Act	p. 270
The Personal Deduction for Medical Expenses	p. 273
Deducting Health Insurance Premiums	p. 274
Tax Credits for Employee Health Insurance	p. 282
Medical Reimbursement Plans	p. 283
Health Savings Accounts	p. 291
Deductions That Can Help You Retire	p. 303
Why You Need a Retirement Plan (or Plans)	p. 305
Individual Retirement Accounts (IRAs)	p. 308
Employer IRAs	p. 313
Keogh Plans	p. 316
Solo 401 (k) Plans	p. 317
More Home Business Deductions	p. 321
Advertising	p. 323
Business Bad Debts	p. 325
Casualty Losses	p. 331
Charitable Contributions	p. 335
Dues and Subscriptions	p. 336
Education Expenses	p. 336
Gifts	p. 340
Insurance for Your Business	p. 340
Interest on Business Loans	p. 342
Legal and Professional Services	p. 347
Taxes and Licenses	p. 348
Record Keeping and Accounting	p. 353
What Records Do You Need?	p. 354
Records of Your Income and Expenses	p. 359
Records Required for Specific Expenses	p. 369
How Long to Keep Records	p. 382
What If You Don't Have Proper Tax.Records?	p. 384
Accbunting Methods	p. 385
Tax Years	p. 393
Husband and Wife Home Businesses	p. 395
An Employer-Employee Arrangement	p. 396
Establish a Qualified Joint Venture	p. 400
Form a Business Entity	p. 401
Do Nothing	p. 402
Staying Out of Trouble With the IRS	p. 403
What Every Home Business Owner Needs to Know About the IRS	p. 404
Ten Tips for Avoiding an Audit	p. 411
Help Beyond This Book	p. 419
Secondary Sources of Tax Information	p. 420
The Tax Law	p. 427
Consulting a Tax Professional	p. 434
Index	p. 437
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