You are previewing J.K. Lasser's Small Business Taxes 2014: Your Complete Guide to a Better Bottom Line.
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J.K. Lasser's Small Business Taxes 2014: Your Complete Guide to a Better Bottom Line

Book Description

The tax facts and strategies that every small business owner needs to know

Owning a small business is a big responsibility. While all small business owners seek to improve their bottom line, few realize all the ways that both current and new tax laws can help them do so. With J.K. Lasser's Small Business Taxes 2014, you'll quickly discover how. Written in a straightforward and accessible style, this reliable resource offers a complete overview of small business tax planning and provides you with the information needed to make tax-smart decisions throughout the year.

Focusing on strategies that help you use deductions and tax credits effectively, shield business income, and maximize other aspects of small business taxes, this practical guide will show you how your actions in business today can affect your bottom line from a tax perspective tomorrow.

  • Includes detailed coverage of the newest tax laws and IRS rules, including tax breaks and responsibilities under the Affordable Care Act

  • Shares ideas that can help you run a tax-smart business all year long and plan your exit strategy

  • Contains comprehensive information on each deductible expense, including dollar limits and record-keeping requirements

  • Offers clear instructions on where to report income and claim deductions on your tax forms

  • Includes a free online supplement at JKLasser.com, which contains up-to-the-minute tax law changes

  • Other titles by Barbara Weltman: J.K. Lasser's 1001 Deductions & Tax Breaks 2014

Making the right tax moves can make your business better. Let J.K. Lasser's Small Business Taxes 2014 show you how, with strategies and advice that will help you understand and plan for both today's and tomorrow's tax laws.

Table of Contents

  1. Cover Page
  2. Title Page
  3. Dedication
  4. Copyright
  5. Contents
  6. Preface
    1. How to Use This Book
  7. Introduction
    1. Special Rules for Small Businesses
  8. 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
  9. 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. Investment-Type Income
      6. Miscellaneous Business Income
      7. State Income Taxes on Business Income
      8. Net Operating Losses
      9. Limitations on Business Losses
    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 and Losses for C Corporations
      4. Sales of Business Interests
      5. Special Situations
    3. CHAPTER 6: Gains and Losses from Sales of Business Property
      1. Section 1231 Gains and Losses
      2. Installment Sales
      3. Recapture
      4. Involuntary Conversions
      5. Abandonment, Foreclosure, and Repossession of Property
      6. Sale of All the Assets of the Business
  10. 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. Employee Benefits
      9. Nonstatutory Fringe Benefits
      10. Cafeteria Plans
      11. 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. Special Rules for Improvements for the Elderly and Handicapped
      4. Lists of Deductible Repairs and Capital Improvements
      5. 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. Rebuilding Incentives for Certain Disaster Victims
      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. Web Sites
      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, Roth 401(k)s, and Db(k)s
      5. Individual Retirement Accounts
      6. When to Take Action
      7. Comparison of Qualified Retirement Plans
      8. ESOPs
      9. Correcting Plan Defects
      10. Nonqualified Retirement Plans
      11. 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
    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. Safe Harbor Method
      6. Special Business Uses of a Home
      7. Ancillary Benefits 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
      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
    14. CHAPTER 20: Deductions and Tax Credits for Farmers
      1. Farm Expenses
      2. Farm Losses
      3. Farm-Related Tax Credits
      4. 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. 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
  11. PART 4: Tax Planning for Your Small Business
    1. CHAPTER 24: Income and Deduction Strategies
      1. Tax-Saving Tips
      2. Common Errors and How to Avoid Them
      3. 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. Sales and Use Taxes
      4. Excise Taxes
    7. CHAPTER 30: Filing Income Tax Returns and Paying Taxes
      1. Filing Deadlines and Extensions
      2. Online Filing of Business Income Tax Returns
      3. Paying Taxes
      4. Online Filing of Other Business Returns
    8. CHAPTER 31: Succession Planning
      1. Exit Strategies
      2. Financing Options to Fund Buyouts
      3. Consulting Agreements
      4. Estate Taxes
      5. Estate Planning Concerns
  12. 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. Merchant Transactions
  13. APPENDIX B: Checklist of Tax-Related Corporate Resolutions
  14. Index