Small Business Taxes Made Easy

by Rosenberg, Eva

• ISBN13: 9780071441681
• ISBN10: 0071441689
• Edition: 1st
• Format: Paperback
• Copyright: 2004-12-30
• Publisher: McGraw-Hill

Summary

The ultimate tax expert shows small business owners how to keep more of what you earn For millions of self-employed Americans, Eva Rosenberg is the go-to person for tax advice. Now, from the woman behind the wildly popular TaxMama.com--named one of the top seven tax advice websites by Inc. magazine--comes the ultimate guide to navigating the tax maze. Small Business Taxes Made Easywalks you through every stage of the process, showing you how to reduce your tax losses at every step. You'll learn: How to set up a business plan that helps minimize taxes The tax benefits of various forms of financing How to spot errors in 1099s and what to do about them Record-keeping techniques that legally increase deductible expenses

Author Biography

Eva Rosenberg is one of America's most popular small business tax experts. She has been featured in the Wall Street Journal, U.S. News and World Report, the Los Angeles Times, and other leading publications.

Table of Contents

Acknowledgments	xiii
Introduction: A Letter from Eva Rosenberg to You, the Business Owner	xv
Lighten Up	xxi
Small Business Checklist	1	(20)
Three Indicators Will Predict the Success of the Business	2	(1)
So, What Do You Need to Do?	3	(1)
The Checklist in To-Do Order	4	(11)
Checklist Resources	15	(6)
Business Plans You Know and Trust	21	(12)
Why You Need a Business Plan	21	(2)
General Benefits	23	(1)
The Fine Line Between Success and Failure	23	(4)
Let's Not Fail Due to Success	27	(1)
Outline of a Plan	28	(1)
Rebalancing Your Business Plan for Tax Consequences	29	(1)
Business Plan Books and Resources	30	(3)
Entities	33	(22)
Decisions, Decisions, Decisions	33	(1)
What Do You Want to Be When You Grow Up?	34	(3)
Entities, in All Their Glory	37	(7)
A Brief Word About Nevada and Delaware Corporations	44	(1)
What About Nonprofits?	45	(5)
Entities We're Not Discussing	50	(1)
All the Highlights in One Place	50	(2)
Your Big Decision	52	(1)
Entity Resources	52	(3)
Record Keeping	55	(20)
Types of Accounting Systems	55	(3)
Doing It by Hand	58	(1)
The IRS Says It All	58	(1)
Fiscal Year	58	(2)
Accounting Styles	60	(1)
Records You Must Keep	61	(2)
How Long Should You Keep Records?	63	(1)
Glossary of Bookkeeping Terms	64	(6)
Record-Keeping Resources	70	(5)
Income	75	(18)
Money In, Money Out, Wave Your Hands All About	75	(1)
A Capital Idea	76	(1)
What Is Income?	77	(1)
Timing of Income	78	(1)
A Brief Note About Accrual Basis	79	(1)
Sales Taxes Received---Are They Your Money?	79	(1)
Income Rarely Reported	79	(3)
1099s Your Business Receives	82	(9)
So, What the Heck Is Income?	91	(1)
Income Resources	91	(2)
Common Deductions	93	(22)
Rule of Thumb	93	(1)
Universally Deductible	94	(5)
It's All About You	99	(3)
Mixed-Use Assets	102	(3)
Depreciation	105	(2)
Depreciation in Today's World	107	(3)
Bonus Depreciation	110	(2)
More Deductions Than You Can Imagine	112	(1)
Deduction Resources	112	(3)
Office in Home	115	(16)
Brodsky Is Right: Let's Stay Home	115	(1)
It's a Red Flag; It's Just Asking for an Audit	116	(3)
Another Attractive Change to the Law Affecting Homeowners Only	119	(1)
Inner Space	120	(1)
Two Critical Reminders	120	(1)
Prove It, Baby!	121	(1)
What Are Office-in-Home Expenses?	122	(4)
When You Can't Use Office-in-Home Deductions	126	(1)
Evaluate Your Options	126	(2)
A Final Note	128	(1)
Office-in-Home Resources	129	(2)
Vehicles: Everyone's Favorite Deduction	131	(12)
Deducting Auto Expenses	132	(2)
Should I Lease or Buy?	134	(4)
The Cons of Depreciation	138	(4)
Vehicle Resources	142	(1)
Employees and Independent Contractors	143	(38)
Who Is an Employee?	143	(3)
Protecting Yourself from Independent Contractor Claims	146	(3)
Safe Harbor Rules	149	(1)
What Are 1099s?	150	(5)
Payroll and Payroll Taxes	155	(1)
Payroll Across Entities	155	(1)
Hiring Family Members	156	(4)
Paying Payroll	160	(7)
Preparing Payroll: Checks, Journals, Reports	167	(2)
Reporting Payroll	169	(6)
Employee Benefits	175	(2)
Employee Ownership and Stock Options	177	(1)
Summing Up Employees	178	(1)
Employee and Independent Contractor Resources	178	(3)
Owners' Fringe Benefits, Retirement, and Deferring Taxes	181	(14)
Fringe Benefits and Reimbursements	181	(1)
Health Insurance	182	(2)
Employer-Provided Child-Care Facilities Credit	184	(1)
Life Insurance	184	(1)
Education	185	(1)
Retirement Plans	186	(3)
Tax-Deferred Opportunities	189	(3)
Using the IRS to Your Advantage	192	(1)
Benefits Resources	193	(2)
Estimated Payments	195	(14)
Estimated Payments Overview	195	(1)
What's in It for You?	196	(1)
Who Should Be Paying Estimated Payments?	196	(1)
When Should You Be Making Those Payments?	197	(1)
How Much Must You Pay?	197	(3)
My Short Method	200	(2)
Worst-Case Scenario	202	(1)
Computing Your Estimated Installment Payments	202	(2)
Paying the Tax	204	(1)
Tips to Reduce Underpayment of Estimated Tax Penalties	204	(3)
Don't Overpay Your Estimates if You're in Trouble	207	(1)
Estimated Payment Resources	207	(2)
Special Considerations for Online Businesses	209	(12)
WWW = Who, What, Where?	209	(1)
What? I Thought There Was No Internet Tax	210	(1)
Nexus	211	(2)
Internet Sales Tax Issues	213	(1)
Sales Tax Case Law	214	(1)
Sales Tax Nexus and Your Business	215	(1)
Rents and Services Domestically and Abroad	216	(2)
Legal Issues on the Internet	218	(1)
In the End	218	(1)
Online Business Resources	219	(2)
Tax Notices, Audits, and Collection Notes	221	(30)
Dealing with Basic Tax Notices for Individual Returns	221	(6)
IRS Audits	227	(1)
Anticipating an Audit: Laying the Groundwork	228	(6)
What Will Happen During the Audit?	234	(5)
What if You Don't Have Any Receipts?	239	(2)
Audit Reconsiderations, Appeals, and Tax Court: Some Brief Words	241	(1)
Should You Use Appeals Only as a Last Resort?	242	(1)
Getting Your Case to Tax Court	243	(1)
Owing Taxes	243	(4)
How About Filing Bankruptcy?	247	(1)
Summary of IRS Interactions	248	(1)
Tax Notices, Audits, and Collection Notes Resources	249	(2)
Epilogue: Some Final Words of Advice---and Resources to Rely On	251	(2)
Index	253