J.K. Lasser's Small Business Taxes 2018

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

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 fees you earn for your services or the receipts you collect from the sale of goods are the bread-and-butter income of your business. Hopefully, your pricing policies are realistic and you have a strong customer or client base so that you can make a profit.

Even if sales are healthy, expenses can outrun receipts, resulting in a loss for the business. You will not know whether you have a net income or loss until all of the expenses discussed throughout this book have been taken into account. Income and loss for accounting purposes, which reflects the actual money in and out of the business, may not be the same as income and loss for tax purposes. The reason: Some income may be treated as tax free or tax deferred, so it is not counted currently, while some expenses may not be fully or even partially deductible. For example, ...