J.K. Lasser's 1001 Deductions and Tax Breaks 2018

CHAPTER 15Your Business

• Start-Up Costs
• Equipment Purchases
• Payment for Services
• Supplies
• Gifts
• Hobby Losses
• Self-Employment Tax Deduction
• Home Office Deduction
• Farming-Related Breaks
• Domestic Production Activities Deduction
• Other Business Deductions
• Business Credits
• Net Operating Losses

 

Alert

At the time this book was completed, Congress was considering important tax changes that could affect 2017 tax returns and planning for 2018. Check the online Supplement in February 2018 at www.jklasser.com or www.barbaraweltman.com to see what changes have been enacted and when they are effective.

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 29.6 million small businesses, 80% of which have no employees. 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, independent contractor, or freelancer 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 the tax rules for various business-related deductions and other tax breaks. These rules apply whether your business is full time or part ...