Introduction to Business Taxes | |
Taxes for Small Businesses and the Self-Employed | p. 2 |
How Tax Law Is Made and Administered--The Short Course | p. 3 |
Sources of Tax Law | p. 5 |
Marginal Tax Rate and Tax Brackets | p. 6 |
The Alternative Minimum Tax (AMT) | p. 6 |
The Basics | |
Business Income and Tax-Deductible Expenses | |
How the Tax Code Focuses on Profit | p. 2 |
What Is--And Isn't--Income | p. 3 |
What Is Tax-Deductible in Business? | p. 4 |
Current vs. Capitalized Expenses | p. 5 |
Special Deduction Rules | p. 6 |
How and Where to Claim Deductions | p. 19 |
General Business Credit | p. 19 |
Writing Off Business Assets | |
Expenses That Must Be Capitalized | p. 2 |
Expensing Business Assets: IRC Section 179 | p. 6 |
Depreciating Business Assets | p. 11 |
Leasing Instead of Buying Assets | p. 20 |
Tax Errors in Depreciation | p. 22 |
When You Dispose of Business Assets: Depreciation Recapture | p. 23 |
Bookkeeping and Accounting | |
Why You Need a Bookkeeping System | p. 2 |
Should You Hire a Bookkeeper? | p. 3 |
Manual or Computer System? | p. 3 |
What Kinds of Records to Keep | p. 7 |
How Long Records Should Be Kept | p. 11 |
Bookkeeping Methods of Tracking Income and Expenses | p. 11 |
Timing Methods of Accounting: Cash and Accrual | p. 13 |
Accounting Periods: Calendar Year or Fiscal Year | p. 15 |
Business Losses and Failures | |
Unincorporated Business Losses | p. 2 |
Incorporated Business Losses | p. 5 |
Tax Concerns of Employers | |
Payroll Taxes | p. 3 |
Employee or Independent Contractor? | p. 9 |
Misclassifying Employees As Independent Contractors | p. 12 |
IRS Filing and Payment Requirements for Employers | p. 15 |
Recordkeeping Requirements on Service Providers | p. 16 |
The Structure of Your Business | |
Sole Proprietorships | |
Business Expenses | p. 2 |
Profits Left in the Business | p. 2 |
How Sole Proprietors Report Taxes | p. 3 |
Estimated Tax Payments = Pay As You Go | p. 7 |
Employment Tax Rules | p. 8 |
Recordkeeping | p. 8 |
Outgrowing a Sole Proprietorship | p. 8 |
Ending the Business | p. 9 |
Death and Taxes | p. 9 |
C Corporations | |
Types of Corporations | p. 2 |
How C Corporations Are Taxed | p. 4 |
Tax Benefits of C Corporations | p. 9 |
Incorporating Your Business | p. 11 |
Issuing Section 1244 Stock to Benefit Shareholders If the Business Fails | p. 15 |
Taking Money Out of a C Corporation | p. 16 |
Tax Pitfalls of C Corporations | p. 20 |
Dissolving a C Corporation | p. 20 |
S Corporations | |
An Overview of S Corporations | p. 2 |
Should You Choose S Corporation Status? | p. 3 |
Tax Reporting for S Corporations | p. 5 |
How S Corporation Shareholders Are Taxed | p. 8 |
Payroll Taxes on Employment Income (Social Security and Medicare) | p. 9 |
Electing S Corporation Status | p. 12 |
Revoking S Corporation Status | p. 12 |
Dissolving an S Corporation | p. 13 |
Partnerships | |
Partnership Tax Status | p. 3 |
Tax Reporting by Partnerships | p. 4 |
Tax Obligations of Partners | p. 7 |
Partnership Losses | p. 10 |
Partnership Contributions | p. 11 |
Withdrawals From a Partnership | p. 14 |
Partnership Expenses | p. 14 |
Selling or Transferring a Partnership Interest | p. 15 |
Ending a Partnership | p. 17 |
Limited Liability Companies | |
Limited Liability Company Income | p. 2 |
Comparing LLCs With Other Entities | p. 2 |
Forming and Operating a Limited Liability Company | p. 4 |
Terminating a Limited Liability Company | p. 7 |
Personal Service Corporations | |
Professional Corporations That Qualify As Personal Service Corporations | p. 2 |
Taxation of Personal Service Corporations and Shareholders | p. 3 |
Fringe Benefits for Personal Service Corporations | p. 4 |
Potential Tax Problems With Personal Service Corporations | p. 5 |
Transferring Shares or Dissolving a Personal Service Corporation | p. 5 |
Thinking Small | |
Family Businesses | |
The Legal Structure of a Family Business | p. 2 |
Income Splitting to Lower Taxes | p. 2 |
A Spouse in the Business | p. 6 |
Preserving a Family Business | p. 7 |
Microbusinesses and Home-Based Businesses | |
Business Expenses Incurred at Home | p. 2 |
Deducting Part of the Cost of Your Home | p. 2 |
Calculating Your Home Office Deduction | p. 6 |
Home Office Depreciation When Selling Your Home | p. 9 |
A Microbusiness As a Tax Shelter | p. 9 |
Estimated Taxes | p. 12 |
Fringe Benefits | |
Fringe Benefits | |
How Fringe Benefits Save Taxes | p. 3 |
Retirement Benefits | p. 4 |
Motor Vehicles | p. 4 |
Meals | p. 5 |
Travel, Conventions and Lodging | p. 5 |
Clubs and Athletic Facilities | p. 7 |
Association Dues and Subscriptions | p. 8 |
Health Benefits | p. 8 |
Day-Care Benefit | p. 10 |
Education Benefits | p. 10 |
Gifts, Rewards, Discounts and Free Services | p. 11 |
Adoption Assistance | p. 12 |
Special Benefits for C Corporation Employees | p. 12 |
Retirement Plans | |
Tax-Advantaged Retirement Plans | p. 2 |
Overview of Retirement Plans | p. 3 |
Where to Go for a Tax-Advantaged Retirement Plan | p. 4 |
Details About Each Type of Retirement Plan | p. 6 |
Potential Tax Problems With Retirement Plans | p. 13 |
Withdrawing Money From Retirement Plans | p. 14 |
Work Changes and Retirement Plans | p. 16 |
Buying or Selling a Business | |
Buying a Business | |
Buying the Assets of a Business | p. 2 |
Buying Shares of Stock | p. 3 |
Assigning a Price to Business Assets | p. 6 |
State and Local Transfer Taxes | p. 8 |
Selling a Sole Proprietorship | |
Selling Assets of a Sole Proprietorship | p. 2 |
The Importance of an Arms-Length Deal | p. 3 |
How to Protect Yourself From IRS Challenges | p. 4 |
Dealing With the IRS | |
When You Can't Pay Your Taxes | |
If You Owe Less Than $25,000 | p. 3 |
Getting More Time to Pay | p. 3 |
Paying in Installments | p. 3 |
What to Expect When the IRS Gets Serious | p. 5 |
Dealing With a Monster Tax Bill | p. 7 |
When the IRS Can Take Your Assets | p. 10 |
Audits | |
Who Gets Audited? | p. 3 |
How Long Do You Have to Worry About an Audit? | p. 5 |
How the IRS Audits Small Businesses | p. 6 |
The Auditor's Powers | p. 7 |
Should You Get Audit Help? | p. 8 |
Preparing for Your Audit | p. 9 |
What to Bring to an Audit of Your Small Business | p. 9 |
Don't Rush a Field Audit | p. 14 |
What Auditors Look for When Examining a Business | p. 15 |
How to Behave at an Audit | p. 16 |
How to Negotiate With an Auditor | p. 18 |
Your Options After Getting an Audit Report | p. 20 |
When Your Audit Is Final | p. 21 |
Appealing IRS Audits | |
IRS Appeals | p. 2 |
Contesting an Audit in Court | p. 5 |
Penalties and Interest | |
Common Reasons for Penalties | p. 2 |
Interest on Tax Bills | p. 3 |
Understanding Penalty and Interest Notices | p. 3 |
How to Get Penalties Reduced or Eliminated | p. 4 |
How to Get Interest Charges Removed | p. 6 |
Designating Payments on Delinquent Tax Bills | p. 7 |
Help Beyond the Book | |
Finding Answers to Tax Questions | p. 2 |
Finding and Using a Tax Pro | p. 7 |
Answers to Frequently Asked Tax Questions | |
Glossary | |
Appendix | |
Index | |
Table of Contents provided by Ingram. All Rights Reserved. |
The New copy of this book will include any supplemental materials advertised. Please check the title of the book to determine if it should include any access cards, study guides, lab manuals, CDs, etc.
The Used, Rental and eBook copies of this book are not guaranteed to include any supplemental materials. Typically, only the book itself is included. This is true even if the title states it includes any access cards, study guides, lab manuals, CDs, etc.