Top
Acknowledgements
Introduction: A Letter from Eva Rosenberg to You, the Business Owner
Lighten Up
How to Use This Book
1 Small Business Checklist
2 Business Plans You Know and Trust
3 Entities
Decisions, Decisions, Decisions
What Do You Want to Be When You Grow Up?
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
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
Record-Keeping Resources
5 Income
Money In, Money Out, Wave Your Hands All About
A Capital Idea
What Is Income?
Timing of Income
A Brief Note about Accrual Basis
Sales Taxes Received—Are They Your Money?
Income Rarely Reported
The IRS Has a New Audit Guide
1099s Your Business Receives
So What the Heck Is Income?
6 Common Deductions
Rule of Thumb
Universally Deductible
It’s All about You
Mixed-Use Assets
Depreciation
Depreciation in Today’s World
Bonus Depreciation
More Deductions Than You Can Imagine
7 Office in Home
The Song Is Right! Let’s Stay Home
It’s a Red Flag; It’s Just Asking for an Audit
Another Attractive Change to the Law Affecting Homeowners Only
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
8 Vehicles: Everyone's Favorite Deduction
Deducting Auto Expenses
Should I Lease or Buy?
The Cons of Depreciation
Give Yourself Credit
9 Employees and Independent Contractors
Who Is an Employee?
Protecting Yourself from Independent Contractor Claims
Bennie the Barber
Safe Harbor Rules
What Are 1099s?
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
10 Owners' Fringe Benefits, Retirement, and Tax Deferment
Fringe Benefits and Reimbursements
Health Insurance
The Health Care Reform Act of 2010
Adoption Credits
Employer-Provided Child-Care Facilities Credit
Life Insurance
Employee Leasing and Trusts
Education
Retirement Plans
Tax-Deferred Opportunities
Using the IRS to Your Advantage
11 Estimated Payments
Estimated Payments Overview
What’s in It for You?
Who Should Be Making Estimated Payments?
When Should You Be Making Those Payments?
How Much Must You Pay?
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
12 Special Considerations for Online Businesses
WWW = Who, What, Where?
What? I Thought There Was No Internet Tax
Nexus
Internet Sales Tax Issues
Sales Tax Case Law
Sales Tax Nexus and Your Business
Rents and Services—Domestical and Abroad
Legal Issues on the Internet
In the End
13 Tax Notices, Audits, and Collection Notes
Dealing with Basic Tax Notices for Individual Returns
IRS Audits
What Is Most Apt to Attract the IRS’s Attention?
Anticipating an Audit: Laying the Groundwork
What Will Happen during the Audit?
What if You Don’t Have Any Receipts?
Audit Reconsiderations, Appeals, and Tax Court: Some Brief Words
Should You Use Appeals Only as a Last Resort?
Getting Your Case to Tax Court
Owing Taxes
How about Filing Bankruptcy?
Summary of IRS Interactions
Epilogue: Some Final Words of Advice-- and Resources to Rely On
Index
