J.K. Lasser's Small Business Taxes 2023

Book description

Comprehensive guide to small business tax write-offs and strategies from a leading name in tax

Small business owners in the US face enough challenges without overpaying tax. Despite this, millions of small businesses miss out on crucial deductions, tax credits, and tax-saving moves every year, resulting in higher-than-necessary tax bills. In J.K. Lasser’s Small Business Taxes 2023: Your Complete Guide to a Better Bottom Line, renowned attorney and small business advocate Barbara Weltman offers a thorough and exhaustively researched roadmap to legally minimizing your tax liability and maximizing your deductions and credits.

In the book, you’ll find tax facts and planning strategies that help you make business decisions in the most tax-efficient way possible. You’ll also discover:

  • A complete list of the business expense deductions and tax credits available to you and what you need to do to qualify for them
  • Up-to-date info on current tax law and procedure, including information on the latest relevant legislation
  • Guidance on avoiding tax penalties and minimizing audit risk
  • A heads-up on coming changes to help you plan for next year’s taxes
  • Sample forms and checklists to help you get organized and help you stay tax compliant
  • A free e-supplement that includes the latest developments from the IRS and Congress

A concise and plain-English guide for every small business owner in America, Small Business Taxes 2023 is the detailed and accessible tax overview you’ve been waiting for.

Table of contents

  1. Cover
  2. Title Page
  3. Copyright
  4. Preface
    1. How to Use This Book
  5. Introduction
    1. Special Rules for Small Businesses
  6. 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. Benefit Corporations
      6. Employees
      7. Factors in Choosing Your Form of Business Organization
      8. Forms of Business Organization Compared
      9. Changing Your Form of Business
    2. CHAPTER 2: Tax Year and Accounting Methods
      1. Accounting Periods
      2. Accounting Methods
      3. Uniform Capitalization Rules
      4. Change in Accounting Method
    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
  7. 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. Income from Rentals
      7. Income from Government Programs
      8. Investment‐Type Income
      9. Miscellaneous Business Income
      10. State Income Taxes on Business Income
      11. Noncorporate Excess Business Losses
      12. Net Operating Losses
      13. Other Limitations on Business Losses
      14. 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. Opportunity Zone Investments
      7. 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
      8. Opportunity Zone Business Transactions
  8. PART 3: Business Deductions and Credits
    1. CHAPTER 7: Employee Compensation
      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. Golden Parachute Payments
      9. Fringe Benefits
      10. Cafeteria Plans
      11. Employment Tax Credits
    2. CHAPTER 8: Travel, Meals, and Gift 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
    3. CHAPTER 9: Car and Truck Expenses
      1. Deducting Car and Truck Expenses in General
      2. Actual Expense Method
      3. Standard Mileage Allowance
      4. Leasing a Vehicle for Business
      5. Arranging Vehicle Ownership
      6. Nonpersonal Use Vehicles
      7. Credit for Clean Energy Vehicles
      8. Dispositions of a Vehicle
      9. Reimbursement Arrangements
      10. Recordkeeping for Vehicle Expenses
    4. CHAPTER 10: Repairs, Maintenance, and Energy Improvements
      1. Ordinary Repairs
      2. Rehabilitation Plans
      3. Qualified Improvement Property
      4. Small Business Safe Harbors
      5. Rotable Spare Parts
      6. Change in Accounting Method
      7. Special Rules for Improvements for the Elderly and People with Disabilities
      8. Lists of Deductible Repairs and Capital Improvements
      9. 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. Rent for Employee Parking
      3. The Cost of Acquiring, Modifying, or Canceling a Lease
      4. Improvements You Make to Leased Property
      5. Rental of a Portion of Your Home for Business
      6. Leasing a Car
      7. Leveraged Leases
    7. CHAPTER 13: Taxes and Interest
      1. Deductible Taxes
      2. Self‐Employment Tax
      3. Nondeductible Taxes
      4. Deductible Interest
      5. Nondeductible Interest and Other Limitations on Deductibility
    8. CHAPTER 14: First‐Year Expensing, Depreciation, Amortization, and Depletion
      1. Section 179 Expensing
      2. Other Expensing Opportunities
      3. Bonus Depreciation
      4. General Rules for Depreciation
      5. Modified Accelerated Cost Recovery System
      6. Depreciation Methods
      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 and Apps
      6. Social Media
    10. CHAPTER 16: Retirement Plans
      1. Qualified Retirement Plans
      2. Added Costs for Retirement Plans
      3. Credit for Plan Start‐Up Costs
      4. Retirement Plans for Self‐Employed Individuals
      5. Regular 401(k)s and Designated Roth Accounts
      6. Pooled Employer Plans (PEPs)
      7. Individual Retirement Accounts
      8. COVID‐19‐Related Rules
      9. Disaster‐Related Rules
      10. State‐Sponsored Plans for the Private Sector
      11. When to Take Action
      12. Plan Problems and Corrections
      13. Comparison of Qualified Retirement Plans
      14. ESOPs
      15. Retirement Plans Owning Your Business
      16. Terminating Plans
      17. Nonqualified Retirement Plans
      18. 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. Disaster Assistance
    12. CHAPTER 18: Home Office Deductions
      1. Home Office Deductions in General
      2. Actual Expense or Simplified Method
      3. Actual Expense Method
      4. Simplified Method
      5. Special Business Uses of a Home
      6. Mobile Offices
      7. Ancillary Benefit of Claiming Home Office Deductions
      8. Impact of Home Office Deductions on Home Sales
    13. CHAPTER 19: Medical Coverage
      1. Health Care Mandates
      2. Deducting Medical Insurance for Covering Employees
      3. Deducting Health Coverage for Self‐Employed Persons and More‐Than‐2% S Corporation Shareholders
      4. Using Reimbursement Plans
      5. Tax Credit for Contributions to Employee Health Coverage
      6. Shifting the Cost of Coverage to Employees
      7. Health Savings Accounts (HSAs)
      8. Archer Medical Savings Accounts (MSAs)
      9. COBRA Coverage
      10. Wellness Programs
      11. Reporting Health Coverage on W‐2s
      12. Glossary of Terms for Health Coverage
    14. CHAPTER 20: Deductions and Tax Credits for Farmers
      1. Farm Expenses
      2. Interest on Loans
      3. Qualified Business Income Deduction
      4. Farm Losses
      5. Farm‐Related Tax Credits
      6. Nondeductible Farm‐Related Expenses
    15. CHAPTER 21: Qualified Business Income Deduction
      1. General Rules
      2. Qualified Trade or Business
      3. Qualified Business Income
      4. Basic Limitations
      5. Specified Service Trades or Businesses
      6. Other Limitations
      7. Partnerships and S Corporations
      8. Understatement Penalty
    16. CHAPTER 22: Miscellaneous Business Deductions
      1. Other Business Expenses in General
      2. Moving Expenses
      3. Educational Expenses
      4. Charitable Contributions Made by Your Business
      5. Licenses and Permits
      6. Dues and Subscriptions
      7. Legal and Professional Fees
      8. Bank and Merchant Fees
      9. Supplies, Materials, and Office Expenses
      10. Uniforms and Clothing
      11. Insurance
      12. Commissions
      13. Outsourced Workers
      14. Payments to Directors and Independent Contractors
      15. Penalties, Fines, and Damages
      16. Meal Costs for Day‐Care Providers
      17. Expenses of Persons with Disabilities
      18. Dividends‐Received Deduction
      19. Foreign Housing Deduction
      20. Other Expenses
      21. Checklists of Deductible and Nondeductible Items
    17. CHAPTER 23: Roundup of Tax Credits
      1. Employment‐Related Credits
      2. Work‐Related Personal Credits
      3. Capital Construction—Related Credits
      4. Other Tax Credits
      5. General Business Credit
      6. Credits Offsetting Employment Taxes
  9. 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: Distributions from Your Business
      1. Distributions from a Sole Proprietorship
      2. Distributions from a Partnership
      3. Distributions from an S Corporation
      4. Distributions from a C Corporation
    3. CHAPTER 26: 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. Choose Your Accounting Solution
      6. Tax Reporting for the First Year
      7. How to Write Off Start‐Up Costs
      8. Setting Up a Business Bank Account and Credit Card
      9. Moving a Business
      10. Aborted Business Ventures
      11. Bankruptcy
      12. Winding Up a Small Business
      13. Tax Reporting in the Final Year
    4. CHAPTER 27: Tax Strategies for a Sideline Business
      1. Reporting Sideline Business Income
      2. Hobby Activities
      3. Business Expenses
    5. CHAPTER 28: 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
    6. CHAPTER 29: Alternative Minimum Tax
      1. Alternative Minimum Tax Basics
      2. Deduction Limits for Alternative Minimum Tax
      3. Credit Offsets
      4. Minimum Tax Credit
    7. CHAPTER 30: Other Taxes
      1. State Income Taxes
      2. Employment Taxes
      3. Self‐Employment Tax
      4. Additional Medicare Taxes for Individuals
      5. Sales and Use Taxes
      6. Excise Taxes
    8. CHAPTER 31: Filing Tax Returns, Paying Taxes, and Making Refund Claims
      1. Income Tax Deadlines and Extensions
      2. Online Filing of Business Income Tax Returns
      3. Estimated Taxes
      4. Making Tax Payments
      5. Claiming Refunds
      6. Filing Other Business Returns
    9. CHAPTER 32: Retirement and Succession Planning
      1. Retirement Planning
      2. Social Security Planning
      3. Exit Strategies
      4. Financing Options to Fund Buyouts
      5. Consulting Agreements
      6. Estate Taxes
      7. Estate Planning Concerns
    10. CHAPTER 33: Working with CPAs and Other Tax Professionals
      1. Types of Tax Professionals
      2. Finding a Tax Professional
      3. Tips for Selecting a Tax Professional
    11. CHAPTER 34: 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. Special Audit Rules for Partnerships
  10. Appendix A: Information Returns
    1. Dividends
    2. Large Cash Transactions
    3. Payments to Independent Contractors
    4. Health Plans
    5. Pension and Retirement Plan Distributions
    6. Retirement and Employee Benefit Plans
    7. Small Cash Transactions
    8. Wages
    9. Merchant Transactions
    10. Foreign Accounts
  11. Appendix B: Tax Penalties
    1. Failure to File a Tax Return or Pay Tax
    2. Failure to File Retirement Plan Returns and Notices
    3. Failure to File Correct Information Returns
    4. Failure to File Correct Payee Statements
    5. Accuracy‐Related Penalties
    6. Preparer Penalties
    7. Penalty Relief
  12. Appendix C: Checklist of Tax‐Related Corporate Resolutions
  13. 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
  14. Index
  15. End User License Agreement

Product information

  • Title: J.K. Lasser's Small Business Taxes 2023
  • Author(s): Barbara Weltman
  • Release date: December 2022
  • Publisher(s): Wiley
  • ISBN: 9781119931218