Introduction: Before We Get Started.
1. What Is a Business for Tax Purposes?
Investing Cannot Be a Business.
Dealing or Trading Could Be a Business.
Rents from Real Estate.
Is It a Hobby or a Business?
Identifying Deductible Business Expenses.
2. Choices for Business Organization.
Limited Liability Companies (LLCs).
Which Form Is Best?
3. Tax Accounting Methods and Periods.
What Is a Method of Accounting?
The Cash Receipts and Disbursements Method.
The Hybrid Method.
Which Method Is Best for You?
4. Limitations on Use of Your Home.
Why Pick on Us?
A Quick Summary of the Restrictions.
Is Your ?Home? Where You Think It Is?
Regular Use of a Home Office.
Exclusive Means Exclusive!
What Is Your Principal Place of Business?
A Place to Meet Patients, Clients, or Customers.
The Use of Separate Structures.
Use as Storage Space.
Application of Section 280A Business-Use Tests to Partnerships
5. Form 8829 Line by Line.
Determining the Part of Your Home Used for Business.
Figuring Your Allowable Deduction.
Depreciation of the Business Portion of Your Home.
An Example Using Form 8829 and Form 4562.
6. Planes, Trains, and (Especially) Automobiles.
Travel Away from Home.
Your Car: Standard Mileage Rate versus Actual Expenses.
How to Report Travel and Transportation Deductions on Your
7. Other Common Business Deductions.
Who Deducts What, Where?
Depreciation of Personal Property.
Books, Subscriptions, and Supplies.
Meals and Entertainment.
Business Liability Insurance.
Health Insurance and Medical Savings Accounts.
Wages for Home-Office Workers.
Retirement Plans for the Self-Employed.
8. Other Taxes.
State and Local Taxes.
Federal Estimated Tax Payments.
9. Records You Better Keep.
General Bookkeeping and Substantiation Requirements.
Special Substantiation Requirements.
When Is It Safe to Throw Stuff Away?