Small business taxes
Book - 2022
If you run a small business, you've likely got more work than you already feel able to handle. The last thing you need is to be running around trying to figure out your taxes at the last minute. So, if you need a hands-on guide to small business taxes that doesn't mess around, look no further than Small Business Taxes For Dummies.
Saved in:
- Subjects
- Published
-
Hoboken, NJ :
Wiley Publishing, Inc
[2022]
- Language
- English
- Main Author
- Edition
- Third edition
- Item Description
- "Learning made easy"--Cover.
Includes index. - Physical Description
- xvi, 278 pages : illustrations ; 24 cm
- ISBN
- 9781119861140
- Introduction
- About This Book
- Foolish Assumptions
- Icons Used in This Book
- Beyond the Book
- Where to Go from Here
- Part 1. Understanding Small Business Taxes
- Chapter 1. Small Business Taxes 101
- Valuing Year-Round Tax Planning
- Factoring taxes into small business decisions
- Checking out common tax mistakes
- Noting How Corporate and Individual Tax Reform Impacts Small Business
- Checking out corporate income tax rate reduction and simplification
- Reducing individual income tax rates
- Noting 20 percent deduction for pass-through entities
- Enjoying better equipment expensing rules
- Increasing maximum depreciation deduction for automobiles
- Limiting interest deductions
- Reducing meal and entertainment deductions
- Eliminating the health insurance mandate
- Revising rules for using net operating losses
- Considering the SECURE ACT of 2019 and COViD-19 Relief Tax Acts
- Contemplating Potential Upcoming Tax Law Changes
- Understanding the Different Types of Taxes You Pay and Your Tax Rates
- Defining total taxes and taxable income
- Your marginal income tax rate for federal income taxes
- State income taxes
- Corporate income tax rates
- Employment (payroll) taxes
- Sales taxes
- Chapter 2. Making Important Business Decisions
- Choosing Your Business Entity
- Sole proprietorships
- Deciding whether to incorporate
- One step further: S corporations
- Partnerships
- Limited liability companies (LLCs)
- Valuing Employee Benefits
- Retirement plans
- Health insurance plans
- Other benefits
- Benefits that are deductible for corporation owners
- Chapter 3. Retirement Accounts and Investments for Small Businesses
- Beginning with Retirement Account Basics: Tax Breaks, Penalties, and Saving Guidelines
- Instant rewards: Upfront tax breaks
- Ongoing tax breaks on your investment earnings
- Additional tax credits for lower-income earners
- Retirement account penalties for early withdrawals
- Guidelines for saving (but not excessively)
- Surveying Your Retirement Account Options
- Maximizing your retirement plan's value
- Checking out your choices
- Developing Realistic Investment Return Expectations
- Estimating your investments' likely future returns
- Compounding your returns
- Selecting Top-Notch Investments for Your Retirement Account
- Considering fund advantages
- Maximizing your chances for fund investing success
- Understanding and using index funds
- Considering exchange-traded funds
- Using asset allocation in your retirement fund portfolio
- Selecting the best stock funds
- Investing in the best exchange-traded funds
- Balancing your act: Funds that combine stocks and bonds
- Finding the best bond funds
- Chapter 4. Real Estate and Your Small Business
- Deciding Whether to Work out of Your Home
- Researching local ordinances and issues
- Controlling costs
- Separating your work life from your personal life
- Doing a cost comparison
- Leasing Space for Your Business
- Leaning toward leasing
- Leasing burdens of retail businesses
- Negotiating a lease
- Buying Business Property
- Taking stock of your financial situation
- Doing a rent-versus-buy analysis
- Evaluating leases as a real estate investor
- Chapter 5. Estate Planning
- Determining Your Estate's Tax Concerns
- Understanding the federal estate tax exemption
- Figuring out your taxable estate
- Examining federal estate tax rates
- Surveying state estate tax rules
- Surveying special estate tax treatment afforded small businesses
- Reducing Expected Estate Taxes with a Few Strategies
- Giving away your assets
- Leaving all your assets to your spouse
- Buying cash-value life insurance
- Setting up trusts
- Getting advice and help
- Part 2. Ongoing Tax Jobs
- Chapter 6. Keeping Track of Your Small Business Revenues and Costs
- Establishing an Accounting System for Your Business
- Separating business from personal finances
- Documenting expenses and income in the event of an audit
- Keeping current on income, employment/payroll and sales taxes
- Reducing your taxes by legally shifting income and expenses
- Keeping Good Tax Records for Your Small Business
- Ensuring a complete and accurate tax return
- Setting up a record-keeping system
- Deciding when to stash and when to trash
- Watching out for state differences
- Replacing lost business records
- Chapter 7. Form 1040 Filing Options
- Sizing Up the New and Improved Form 1040
- Tackling the Income Lines
- Line 1. Wages, salaries, tips, and so forth
- Line 2a. Tax-exempt interest
- Line 2b. Taxable interest
- Lines 3a and 3b. Qualified dividends and ordinary dividends
- Lines 4a and 4b. IRA distributions and taxable amount
- Lines 5a and 5b. Total pensions and annuities
- Lines 6a and 6b. Social Security benefits
- Line 7. Capital gain (or loss)
- Line 8. Other income from Schedule 1, line 9
- Line 11. Adjusted gross income
- Line 12a. Standard deduction or itemized deductions (from Schedule A)
- Line 13. Qualified business income deduction
- Schedule 1. Additional Income and Adjustments to Income
- Line 3
- Line 4
- Line 5
- Line 6
- Line 7
- Line 8
- Adjustments to Income
- Line 11. Educator expenses
- Line 12. Certain business expenses of reservists, performing artists, and some government officials
- Line 13. Health savings account deduction
- Line 15. Deductible part of self-employment tax
- Line 16. Self-employed SEP, SIMPLE, and qualified plans
- Line 17. Self-employed health insurance deduction
- Line 20. IRA deduction
- Line 21. Student loan interest deduction
- Nonrefundable Credits: Schedule 3
- Line 1. Foreign tax credit
- Line 2. Credit for child and dependent care expenses
- Line 3. Education credits
- Line 4. Retirement savings contributions credit
- Chapter 8. Schedule C: Profit or Loss From Business
- Detailing Schedule C
- Getting the Basics Down
- Accounting methods
- Material participation
- Part I. Income
- Line 1. Gross receipts or sales
- Line 2. Returns and allowances
- Line 4. Cost of goods sold
- Line 6. Other income
- Part II. Expenses
- Line 8. Advertising
- Line 9. Car and truck expenses
- Line 10. Commissions and fees
- Line 11. Contract labor
- Line 12. Depletion
- Line 13. Depreciation
- Line 14. Employee benefit programs
- Line 15. Insurance (other than health)
- Line 16a. Mortgage interest
- Line 16b. Other interest
- Line 17. Legal and professional services
- Line 18. Office expense
- Line 19. Pension and profit-sharing plans
- Lines 20a and b. Rent or lease
- Line 21. Repairs and maintenance
- Line 22. Supplies
- Line 23. Taxes and licenses
- Lines 24a and b. Travel and meals
- Line 25. Utilities
- Line 26. Wages
- Line 27. Other expenses
- Line 30. Form 8829
- Lines 32a and b. At-risk rules
- Chapter 9. The Business Use of Your Home
- Checking Out the New, Simplified Home Office Deduction
- Filling Out Form 8829
- Recognizing who can use Form 8829
- Measuring the part of your home used for business
- Figuring your allowable home office deduction
- Determining your home office's depreciation allowance
- Carrying over what's left
- Understanding the Downsides to Home Office Deductions
- Audit risk and rejection of repeated business losses
- Depreciation recapture when selling a home with previous home office deductions
- Chapter 10. Estimated Taxes, Self-Employment Taxes, and Other Common Forms
- Form 1040-ES: Estimated Tax for individuals
- Comparing the safe harbor method to the 90 percent rule
- Completing and filing your Form 1040-ES
- Paying estimated taxes on or through the IRS website
- Keeping Current on Your Employees' (and Your Own) Tax Withholding
- Form W-4 for employee withholding
- Tax withholding and filings for employees
- Schedule SE: Self-Employment Tax
- Form 8889: Health Savings Accounts (HSAs)
- Understanding how HSAs work and who can use them
- Completing Form 8889
- Part 3. Getting Help
- Chapter 11. Dealing with Notices and Audits
- Understanding the Basics You'll Find on an IRS Notice
- Assessing Assessment Notices
- Income verification and proposed changes to your tax return: Forms CP2501 and CP2000
- Request for your tax return: Forms CP515 and CP518
- Backup withholding notice
- Federal tax lien notice: Form 668(F)
- Handling Non-Assessment Notices
- Paying interest on additional tax
- Receiving a delinquent tax return notice
- What You Should Know about Audits
- Surviving the four types of audits
- Prepping for an audit
- Winning your audit
- Understanding the statute of limitations on audits
- Correcting IRS Errors
- Keeping your correspondence short and sweet
- Sending a simple response to a balance due notice
- Getting help from a taxpayer advocate
- Amendinga Return
- More expenses than income (net operating losses)
- The tax benefit rule
- Taking Action Even When You Can't Pay Your Taxes
- Reducing Your Chances of Being Audited
- Declare all your income
- Don't itemize
- Earn less money
- Don't cheat
- Don't cut corners if you're self-employed
- Double-check your return for accuracy
- Stay away from back-street refund mills
- Chapter 12. Keeping Up with and Researching Tax Strategies and Rules
- The Benefits of Preparing Your Own Return
- Using IRS Publications
- Buying Software
- Accessing Internet Tax Resources
- Going right to the source: The IRS
- Utilizing tax preparation sites
- Checking out TaxTopics.net
- Finding out more through research sites
- Hiring Help
- Chapter 13. Paying for Tax Help
- Deciding to Hire Tax Help
- Unenrolled preparers
- Enrolled agents
- Certified public accountants
- Tax attorneys
- Who's best qualified?
- Finding Tax Advisors
- Interviewing Prospective Tax Advisors
- What tax services do you offer?
- What are your particular areas of expertise?
- What other services do you offer?
- Who will prepare my return?
- How aggressive or conservative are you regarding interpreting tax laws?
- What's your experience with audits?
- How does your fee structure work?
- What qualifies you to be a tax advisor?
- Do you carry liability insurance?
- Can you provide references of clients similar to me?
- Part 4. The Part of Tens
- Chapter 14. Ten+ Useful Apps and Software Packages for Small Business Tax Issues
- Tracking Expenses with Expensify
- Processing Sales with Square
- Managing Transactions with EMS+
- Marking Miles with MilelQ
- Managing Your Accounting with QuickBooks
- Handling Accounting and Invoicing with FreshBooks
- Preparing Taxes with TurboTax Self-Employed
- Completing Taxes with H&R Block Tax Preparation and Filing Software
- Chapter 15. Ten Often Overlooked Tax Reduction Opportunities
- Invest in Wealth-Building Assets
- Fund Some Retirement Accounts
- Contribute to a Health Savings Account
- Work Overseas
- Calculate Whether a Deduction Is Worth Itemizing
- Trade Consumer Debt for Mortgage Debt
- Consider Charitable Contributions and Expenses
- Scour for Self-Employment Expenses
- Married Couples Should Crunch the Numbers on Filing Separately
- Tax Breaks for Minority Owned Businesses and Those in Low-Income Areas
- Chapter 16. Ten Resources to Turn to After Reading This Book
- To Develop a Good Business Plan and Improve Your Small Business
- To Whip Your Finances into Shape
- To Select the Best Business Entity
- To Set Up an Accounting and Financial Management System
- To Hone Your Investment Savvy for Your (and Your Employees') Retirement Funds
- For Help with Payroll Regulations and Employee Tax Withholdings
- To Dig Deeper into IRS Rules and Regulations
- To Deal with IRS Collection Efforts
- For More Detailed Advice about All Aspects of Your Income Tax Return
- For Assistance in Preparing Your Income Tax Return
- Index