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J.K. Lasser's Small Business Taxes 2017

Book Description

The ultimate money-saving tax guide for the small business owner

J.K. Lasser's Small Business Taxes is designed to help business owners make sense of their taxes and file correctly, on time, without over- or under-paying. Maximize your bottom line with a complete listing of all available business expense deductions, small business tax planning strategies, and the most up-to-date tax laws and requirements, including plain-English instructions on how to qualify, how to claim, and how to file. There's an e-supplement with the latest tax developments from the IRS and Congress. From employee wages and advertising, to repairs, rents, debts, and more, this book answers all of your questions about your 2016 filing. Stop wading through mountains of paperwork and browsing sketchy tax advice—this book puts America's most trusted tax advisors to work for your business. Detailed guidance includes recordkeeping requirements, dollar limits, sample forms, and checklists, and even shows you exactly which line on which form needs what information—and where to find it.

Business taxes have so many moving parts that putting it all together can seem more difficult than actually running your business in the first place. J.K. Lasser puts a stop to the madness by breaking down the requirements, forms, and processes into a sensible workflow, with expert help that can save your business money.

  • Organize your recordkeeping for a more streamlined filing
  • Claim income and losses from business, property, and capital gains
  • Identify the many business expenses that qualify as deductions
  • Learn professional planning strategies specifically for small businesses
  • Work more efficiently with your own tax advisor

You're an expert on your business, not taxes. Unless you're inclined to moonlight as a tax accountant, you need a trusted expert on your side to help you keep more money where it belongs—in your business. J.K. Lasser's Small Business Taxes is the ultimate guide to filing quickly, correctly, and with less stress, so you can get filed and get back to work.

Table of Contents

  1. Preface
  2. Introduction
  3. Part 1 Organization
    1. Chapter 1 Business Organization
      1. Sole Proprietorships
      2. Partnerships and Limited Liability Companies
      3. S Corporations and Their Shareholder-Employees
      4. C Corporations and Their Shareholder-Employees
      5. Employees
      6. Factors in Choosing Your Form of Business Organization
      7. Forms of Business Organization Compared
      8. Changing Your Form of Business
      9. Tax Identification Number
    2. Chapter 2 Tax Year and Accounting Methods
      1. Accounting Periods
      2. Accounting Methods
      3. Uniform Capitalization Rules
    3. Chapter 3 Recordkeeping for Business Income and Deductions
      1. General Recordkeeping
      2. Specific Substantiation Requirements for Certain Expenses
      3. Records for Depreciation, Basis, Carryovers, and Prepaid Expenses
      4. How Long You Should Maintain Records
  4. Part 2 Business Income and Losses
    1. Chapter 4 Income or Loss from Business Operations
      1. Business Income
      2. Income for Service Businesses
      3. Income from the Sale of Goods
      4. Income from Farming
      5. Income from Commercial Fishing
      6. Investment-Type Income
      7. Miscellaneous Business Income
      8. State Income Taxes on Business Income
      9. Net Operating Losses
      10. Limitations on Business Losses
      11. Income Earned Abroad
    2. Chapter 5 Capital Gains and Losses
      1. What Are Capital Gains and Losses?
      2. Tax Treatment of Capital Gains and Losses for Pass-Through Entities
      3. Tax Treatment of Capital Gains for C Corporations
      4. Loss Limitations
      5. Sales of Business Interests
      6. Special Situations
    3. Chapter 6 Gains and Losses from Sales of Business Property
      1. Section 1231 Gains and Losses
      2. Sale-Leasebacks
      3. Installment Sales
      4. Recapture
      5. Involuntary Conversions
      6. Abandonment, Foreclosure, and Repossession of Property
      7. Sale of All the Assets of the Business
  5. Part 3 Business Deductions and Credits
    1. Chapter 7 Employee Compensation: Salary, Wages, and Employee Benefits
      1. Worker Classification
      2. Temporary Workers and Outsourced HR
      3. Deductible Employee Compensation
      4. Compensation to Owners
      5. Stock Options and Restricted Stock
      6. Deferred Compensation
      7. Disallowance Repayment Agreements
      8. Employee Benefits
      9. Identity Theft Protection
      10. Nonstatutory Fringe Benefits
      11. Cafeteria Plans
      12. Employment Tax Credits
    2. Chapter 8 Travel and Entertainment Expenses
      1. Local Transportation Costs
      2. Travel within the United States
      3. Foreign Travel
      4. Conventions
      5. Living Away from Home on Temporary Assignments
      6. Meal and Entertainment Expenses
      7. Business Gifts
      8. Reimbursement Arrangements
      9. Recordkeeping Requirements
      10. Employees
    3. Chapter 9 Car and Truck Expenses
      1. Deducting Car Expenses in General
      2. Actual Expense Method
      3. Standard Mileage Allowance
      4. Leasing a Car for Business
      5. Arranging Car Ownership
      6. Employee Use of an Employer-Provided Car
      7. Vehicle Trade-In
      8. Trucks and Vans
      9. Credit for Plug-In Electric Vehicles
      10. Reimbursement Arrangements
      11. Recordkeeping for Car Expenses
    4. Chapter 10 Repairs, Maintenance, and Energy Improvements
      1. Ordinary Repairs
      2. Rehabilitation Plans
      3. Small Business Safe Harbors
      4. Rotable Spare Parts
      5. Change in Accounting Method
      6. Special Rules for Improvements for the Elderly and Handicapped
      7. Lists of Deductible Repairs and Capital Improvements
      8. Energy Improvements
    5. Chapter 11 Bad Debts
      1. Bad Debts in General
      2. Collection of Bad Debts
      3. Business versus Nonbusiness Bad Debts
      4. Loans by Shareholder-Employees
      5. Guarantees That Result in Bad Debts
      6. Special Rules for Accrual Taxpayers
      7. Reporting Bad Debts on the Tax Return
      8. Collection Strategies
    6. Chapter 12 Rents
      1. Deducting Rent Payments in General
      2. The Cost of Acquiring, Modifying, or Canceling a Lease
      3. Improvements You Make to Leased Property
      4. Rental of a Portion of Your Home for Business
      5. Leasing a Car
      6. Leveraged Leases
    7. Chapter 13 Taxes and Interest
      1. Deductible Taxes
      2. Nondeductible Taxes
      3. Deductible Interest
      4. Nondeductible Interest and Other Limitations on Deductibility
    8. Chapter 14 First-Year Expensing, Depreciation, Amortization, and Depletion
      1. First-Year Expensing
      2. Other Expensing Opportunities
      3. General Rules for Depreciation
      4. Modified Accelerated Cost Recovery System
      5. Depreciation Methods
      6. Bonus Depreciation
      7. Limitations on Listed Property
      8. De Minimis Safe Harbor Rule
      9. Putting Personal Property to Business Use
      10. Amortization
      11. Depletion
    9. Chapter 15 Advertising Expenses
      1. Ordinary Advertising Expenses
      2. Promotion of Goodwill
      3. Prizes, Contests, and Other Promotional Activities
      4. Help-Wanted Ads
      5. Websites
      6. Social Media
    10. Chapter 16 Retirement Plans
      1. Qualified Retirement Plans
      2. Added Costs for Retirement Plans
      3. Retirement Plans for Self-Employed Individuals
      4. Regular 401(k)s and Designated Roth Accounts
      5. Individual Retirement Accounts
      6. MyRAs
      7. State-Sponsored Plans for the Private Sector
      8. When to Take Action
      9. Actions to Avoid
      10. Comparison of Qualified Retirement Plans
      11. ESOPs
      12. Correcting Plan Defects
      13. Retirement Plans Owning Your Business
      14. Nonqualified Retirement Plans
      15. Glossary of Terms for Retirement Plans
    11. Chapter 17 Casualty and Theft Losses
      1. Casualties and Thefts
      2. Condemnations and Threats of Condemnation
      3. Disaster Losses
      4. Deducting Property Insurance and Other Casualty/Theft-Related Items
      5. Certain Disaster Victims
      6. Disaster Assistance
    12. Chapter 18 Home Office Deductions
      1. Home Office Deductions in General
      2. Special Requirements for Employees
      3. Actual Expenses or Safe Harbor Amount
      4. Actual Expense Method
      5. Simplified Method
      6. Special Business Uses of a Home
      7. Mobile Offices
      8. Ancillary Benefits of Claiming Home Office Deductions
      9. Impact of Home Office Deductions on Home Sales
    13. Chapter 19 Medical Coverage
      1. Health Care Mandates
      2. Deducting Medical Insurance for Employees
      3. Deducting Health Coverage by Self-Employed Persons and More-Than-2% S Corporation Shareholders
      4. Using Medical Reimbursement Plans
      5. Tax Credit for Contributions to Employee Health Coverage
      6. Shifting the Cost of Coverage to Employees
      7. Setting Up Health Savings Accounts (HSAs)
      8. Archer Medical Savings Accounts (MSAs)
      9. Health Reimbursement Arrangements
      10. COBRA Coverage
      11. Wellness Programs
      12. Reporting Health Coverage on W-2s
      13. Reporting Health Coverage on Forms 1095
    14. Chapter 20 Deductions and Tax Credits for Farmers
      1. Farm Expenses
      2. Timber Gains
      3. Farm Losses
      4. Farm-Related Tax Credits
      5. Nondeductible Farm-Related Expenses
    15. Chapter 21 Domestic Production Activities Deduction
      1. Background
      2. Qualified Producers
      3. Figuring the Deduction
    16. Chapter 22 Miscellaneous Business Deductions
      1. Other Business Expenses in General
      2. Job-Seeking Expenses
      3. Moving Expenses
      4. Educational Expenses
      5. Charitable Contributions Made by Your Business
      6. Licenses and Permits
      7. Dues and Subscriptions
      8. Legal and Professional Fees
      9. Bank and Merchant Fees
      10. Supplies, Materials, and Office Expenses
      11. Uniforms and Clothing
      12. Insurance
      13. Commissions
      14. Outsourced Workers
      15. Payments to Directors and Independent Contractors
      16. Penalties, Fines, and Damages
      17. Meal Costs for Day-Care Providers
      18. Expenses of Disabled Persons
      19. The Dividends-Received Deduction
      20. Foreign Housing Deduction
      21. Other Expenses
    17. Chapter 23 Roundup of Tax Credits
      1. Employment-Related Credits
      2. Capital Construction–Related Credits
      3. Other Tax Credits
      4. General Business Credit
  6. Part 4 Tax Planning for Your Small Business
    1. Chapter 24 Income and Deduction Strategies
      1. Tax-Saving Tips
      2. Audit-Proofing Your Return
      3. Common Errors and How to Avoid Them
      4. Tax Assistance
    2. Chapter 25 Tax Strategies for Opening or Closing a Business
      1. Initial Tax Decisions to Make
      2. Investing Your Own Resources
      3. Debt versus Equity Financing
      4. Tax Identification Numbers
      5. Tax Reporting for the First Year
      6. How to Write Off Start-Up Costs
      7. Setting Up a Business Bank Account and Credit Card
      8. Moving a Business
      9. Aborted Business Ventures
      10. Bankruptcy
      11. Expenses of Winding Up a Small Business
      12. Tax Reporting in the Final Year
    3. Chapter 26 Tax Strategies for a Sideline Business
      1. Reporting Sideline Business Income
      2. Hobby Losses
      3. Business Expenses
    4. Chapter 27 Tax Strategies for Multiple Businesses
      1. Advantages and Disadvantages of Multiple Entities
      2. When to Run Multiple Activities within One Business
      3. Treatment of Multiple Corporations
      4. Tax Rules for Owners of Multiple Businesses
    5. Chapter 28 Alternative Minimum Tax
      1. Alternative Minimum Tax Basics
      2. Deduction Limits for Alternative Minimum Tax
      3. Credit Offsets
      4. Minimum Tax Credit
    6. Chapter 29 Other Taxes
      1. State Income Taxes
      2. Employment Taxes
      3. Self-Employment Tax
      4. Sales and Use Taxes
      5. Excise Taxes
    7. Chapter 30 Filing Tax Returns and Paying Taxes
      1. Income Tax Deadlines and Extensions
      2. Online Filing of Business Income Tax Returns
      3. Estimated Taxes
      4. Making Tax Payments
      5. Filing Other Business Returns
      6. Using Tax Professionals
    8. Chapter 31 Retirement and Succession Planning
      1. Retirement Planning
      2. Exit Strategies
      3. Financing Options to Fund Buyouts
      4. Consulting Agreements
      5. Estate Taxes
      6. Estate Planning Concerns
    9. Chapter 32 Working with CPAs and Other Tax Professionals
      1. Types of Tax Professionals
      2. Finding a Tax Professional
      3. Tips for Selecting a Tax Professional
    10. Chapter 33 Handling Audits with the IRS
      1. Types of Audits
      2. Appeals
      3. Litigation
      4. Mediation
      5. Taxpayer Bill of Rights
      6. Taxpayer Advocate Service
  7. Appendix A Information Returns
    1. Dividends
    2. Large Cash Transactions
    3. Payments to Independent Contractors
    4. Pension and Retirement Plan Distributions
    5. Retirement and Employee Benefit Plans
    6. Small Cash Transactions
    7. Wages
    8. Health Coverage
    9. Merchant Transactions
    10. Foreign Accounts
  8. Appendix B Tax Penalties
    1. Failure to File a Tax Return or Pay Tax
    2. Failure to File Correct Information Returns
    3. Failure to File Correct Payee Statements
    4. Accuracy-Related Penalties
    5. Preparer Penalties
    6. Penalty Relief
  9. Appendix C Checklist of Tax-Related Corporate Resolutions
  10. Appendix D List of Dollar Limits and Amounts Adjusted for Inflation
    1. Items Adjusted Annually for Inflation
    2. Items Fixed by the Tax Code
    3. Items Set by the IRS
  11. Index
  12. EULA