Table of Contents

Introduction

Preface

    The Future of Online Selling
    Updates
    What to do if you've made a mistake on a past return

Chapter One - Business Entity

    Sole Proprietor
    Partner
    Limited Partnership
    Family Limited Partnership
    Limited Liability Company
    Corporation
    S Corporation

Chapter Two - Forms and Publications

    How Tax Laws Work
    Forms
    Publications

Chapter Three - Keeping Records

    What Records are Necessary
    Record Keeping Computer Software
    Bank Deposits
    Business vs. Personal Records
    How Long Should Records be Kept

Chapter Four - Income

    Accounting Methods
      Cash
      Accrual
    Totalling Your Income
      Fees
      Refunds/Returns
      Bad Debts
      Barter and Trade
    What is Not Income
    Acceptable Records for Income
    Summary

Chapter Five - Inventory

    Keeping Records of Purchases
    Cost of Goods Sold
      Cost
      Fair Market Value
      Materials and Supplies
      Making Your Own Inventory
    Special Provision for Qualifying Taxpayers
    Consignments
    Inventory Never Received
    Personal Items Converted to Inventory
    Inventory Disposal

Chapter Six - Expenses, Schedule C

    Ordinary and Necessary
    Schedule C, Part II
      Advertising
      Car and Truck
      Commissions and Fees
      Contract Labor
      Depreciation and Section 179
      Insurance
      A Note on Health Insurance
      Interest
      Legal and Professional Services
      Office Expenses
      Postage
      Pension and Profit Sharing Plans
      A Note on Self-Employment Retirement Plans
      Rent or Lease
      Repairs and Maintenence
      Supplies
      Taxes and Licenses
      Travel
      Utilities
      Wages
    Other Expenses
      Education
      Internet Service
      Business Publications and Books
    Total

Chapter Seven - Equipment Deductions/Depreciation

    Recovery Periods
    Section 179
      Criteria for Section 179
      Limits
      Section 179 Does Not Apply To
      Listed Property Section 179
    Depreciation
      Methods
      Declining Balance
      Straight-Line
      Alternative Depreciation
    Comparison of GDS vs. ADS Recovery Periods
    Conventions
      Half-Year
      Mid-Quarter
    Figuring Your Basis
    Depreciation Tables
      Figuring Depreciation Using Tables
    Listed Property - Depreciation
    Choosing a Method
    Converting Personal Equipment to Business
    Filling Out the Form - 4562
      Section 179
      Depreciation
    Additional Notes on Section 179 and Depreciation

Chapter Eight - Disposing of Business Equipment

    Selling Equipment
      Figuring Tax Basis
      Form 4797
      Filling Out the Form
      Depreciation Recapture
      Section 1231 Recapture
      Items Owned Less Than One Year
    Business Use Drops Under 50%
    Casualty and Theft
    Like-Kind Exchanges
    Abandonment

Chapter Nine - Vehicles

    Mileage Records
    Standard Mileage
      When the SMR is Not Allowed
    Actual Expenses
    Depreciation
      Figuring Basis
      Using Straight-Line Depreciation
      Limits
    Section 179
    Certain Other Vehicles
      Section 179 Heavy Vehicles
      Depreciation Heavy Vehicles
    Selling a Vehicle
    Trade-In
    Additional Notes on Vehicles

Chapter Ten - Business Use of Home

    What Qualifies as a Home Office
    Calculating Business Percentage
    Direct and Indirect Expenses
      Direct
      Indirect
      Casualty Losses
      Insurance
      Security System
      Utilities and Services
      Rent
      Repairs
    Depreciation of Your Home
      Things You Need to Know
      First Year Depreciation
      Using the Mid-Month Convention
      Downside of Depreciation
      Limits
    Carry-Over
    Part-Year Use

Chapter Eleven - Employees

    Regular Employees
      EIN - Employer Identification Number
      Employee Paperwork
      Withholding
      Unemployment
      Penalties
      Other Forms and Due Dates
    Independent Contractors
      Responsibilities
      Is Worker an Independent Contractor?
      Records to Keep
    Hiring Your Family
      Children
      Spouse
      Parents

Chapter Twelve - Self-Employment Taxes

    What is Self-Employment Tax
    Who Must File
    Where to File
    when You Can't Pay Your Taxes Due

Chapter Thirteen - Filing Quarterly

    When and What to Pay
    Exceptions
    Form 1040ES
    Overpayment
    Underpayment and Late Penalties

Chapter Fourteen - NOL - Net Operating Loss

    NOL (Net Operating Loss)
    At Risk
    Carry Back and Carry Forward of NOL
    Hobby or Business
      3 Out of 5 Rule
      Things You Can Do
      Why Does it Exist
      Worst Case Scenario
    Additional Notes

Chapter Fifteen - State and Local Taxes

    State Sales Tax
    Inventory and Equipment
    Payroll Taxes
    Unemployment
    License Fees
    Out of State Payroll Taxes

Appendix

    Tax Forms

Glossary

Index

 

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