The United States is an entrepreneurial country—it is the American dream to own your own business, and millions already do. It has been estimated that there are now more than 22 million small businesses. Most expenses related to running a business are deductible, but timing issues and limitations may come into play. The tax rules for your business apply whether you operate a full-time or a sideline business. This chapter deals primarily with business deductions for a sole proprietor who files Schedule C (or, for farming, Schedule F). Of course, many rules discussed in this chapter apply to partnerships, limited liability companies, and corporations.
This chapter explains:
Retirement plans for self-employed individuals are discussed in Chapter 5.
For more information, see IRS Publication 15, Circular E, Employer's Tax Guide; IRS Publication 225, Farmer's Tax Guide; IRS Publication 334, Tax Guide for Small Business; IRS Publication ...