SAVVY SAVINGS GUIDE FOR HOME AND BUSINESS：SMALL BUSINESS TAX SECRETS

TAKE CARE OF YOUR TAXES, BEFORE THEY TAKE CARE OF YOU

In a direct and easy-to-use style, the Savvy Savings Guide series offers great financial advice for both your personal and professional life. With each new book, you'll learn how to earn more, spend less, and save for important events such as retirement and your child's college education. From paying less on your taxes to starting a small business the Savvy Savings Guide series will help you save money and succeed!

Small Business Tax Secrets addresses a variety of tax issues that every small business must face.

Here's how to:
* Avoid costly tax mistakes and missed opportunites
* Navigate the details of the new tax laws and IRS rules
* Increase your knowledge of deductible expenses
* Keep your records up to IRS standards
* Organize and run a small business for maximum tax benefits
* Make filing easy by utilizing sample tax forms


The J.K. Lasser Institute is the leading publisher of money and business advice. Each year, millions of Americans trust the J.K. Lasser Institute to help them make the right financial decisions-from making more money today to saving for tomorrow.

GARY W. CARTER, CPA, PhD, MT, has more than 20 years of tax experience. He has worked as a revenue auditor and tax practitioner, and is currently on the faculty of the University of Minnesota’s Carlson School of Management. Carter also writes, lectures, has a Web site (thetaxguy.com), and conducts seminars on tax issues pertaining to home-based businesses.

Introduction: Before We Get Started.

1. What Is a Business for Tax Purposes?

Investing Cannot Be a Business.

Dealing or Trading Could Be a Business.

Rents from Real Estate.

Is It a Hobby or a Business?

Identifying Deductible Business Expenses.

Additional Resources.

2. Choices for Business Organization.

Sole Proprietorships.

Partnerships.

C Corporations.

S Corporations.

Limited Liability Companies (LLCs).

Which Form Is Best?

Additional Resources.

3. Tax Accounting Methods and Periods.

What Is a Method of Accounting?

The Cash Receipts and Disbursements Method.

Accrual Methods.

The Hybrid Method.

Which Method Is Best for You?

Accounting Periods.

Additional Resources.

4. Limitations on Use of Your Home.

Why Pick on Us?

A Quick Summary of the Restrictions.

Is Your “Home” Where You Think It Is?

Regular Use of a Home Office.

Exclusive Means Exclusive!

What Is Your Principal Place of Business?

A Place to Meet Patients, Clients, or Customers.

The Use of Separate Structures.

Use as Storage Space.

Daycare Services.

Application of Section 280A Business-Use Tests to Partnerships and Corporations.

Employee Expenses.

Additional Resources.

5. Form 8829 Line by Line.

Determining the Part of Your Home Used for Business.

Figuring Your Allowable Deduction.

Depreciation of the Business Portion of Your Home.

An Example Using Form 8829 and Form 4562.

Additional Resources.

6. Planes, Trains, and (Especially) Automobiles.

Travel Away from Home.

Transportation.

Your Car: Standard Mileage Rate versus Actual Expenses.

How to Report Travel and Transportation Deductions on Your Return.

Additional Resources.

7. Other Common Business Deductions.

Who Deducts What, Where?

Depreciation of Personal Property.

Computer Software.

Books, Subscriptions, and Supplies.

Telephone Services.

Meals and Entertainment.

Business Liability Insurance.

Health Insurance and Medical Savings Accounts.

Wages for Home-Office Workers.

Retirement Plans for the Self-Employed.

Additional Resources.

8. Other Taxes.

State and Local Taxes.

Self-Employment Tax.

Federal Estimated Tax Payments.

Employment Taxes.

Additional Resources.

9. Records You Better Keep.

General Bookkeeping and Substantiation Requirements.

Special Substantiation Requirements.

When Is It Safe to Throw Stuff Away?

Additional Resources.

Index.