J.K. Lasser’s Small Business Taxes 2022: Your Complete Guide to a Better Bottom Line

go to link Cover Table of Contents Title Page Copyright Preface How to Use This Book Introduction Special Rules for Small Businesses PART 1: Organization CHAPTER 1: Business Organization Sole Proprietorships Partnerships and Limited Liability Companies S Corporations and Their Shareholder-Employees C Corporations and Their Shareholder-Employees Benefit Corporations Employees Factors in Choosing Your Form of Business Organization Forms of Business Organization Compared Changing Your Form of Business CHAPTER 2: Tax Year and Accounting Methods Accounting Periods Accounting Methods Uniform Capitalization Rules Change in Accounting Method CHAPTER 3: Recordkeeping for Business Income and Deductions General Recordkeeping Specific Substantiation Requirements for Certain Expenses Records for Depreciation, Basis, Carryovers, and Prepaid Expenses How Long You Should Maintain Records PART 2: Business Income and Losses CHAPTER 4: Income or Loss from Business Operations Business Income Income for Service Businesses Income from the Sale of Goods Income from Farming Income from Commercial Fishing Income from Rentals Income from Government Programs Investment-Type Income Miscellaneous Business Income State Income Taxes on Business Income Noncorporate Excess Business Losses Net Operating Losses Other Limitations on Business Losses Income Earned Abroad CHAPTER 5: Capital Gains and Losses What Are Capital Gains and Losses? Tax Treatment of Capital Gains and Losses for Pass-Through Entities Tax Treatment of Capital Gains for C Corporations Loss Limitations Sales of Business Interests Opportunity Zone Investments Special Situations CHAPTER 6: Gains and Losses from Sales of Business Property Section 1231 Gains and Losses Sale-Leasebacks Installment Sales Recapture Involuntary Conversions Abandonment, Foreclosure, and Repossession of Property Sale of All the Assets of the Business Opportunity Zone Business Transactions PART 3: Business Deductions and Credits CHAPTER 7: Employee Compensation Worker Classification Temporary Workers and Outsourced HR Deductible Employee Compensation Compensation to Owners Stock Options and Restricted Stock Deferred Compensation Disallowance Repayment Agreements Golden Parachute Payments Fringe Benefits Cafeteria Plans Employment Tax Credits Note CHAPTER 8: Travel, Meals, and Gift Expenses Local Transportation Costs Travel within the United States Foreign Travel Conventions Living Away from Home on Temporary Assignments Meal and Entertainment Expenses Business Gifts Reimbursement Arrangements Recordkeeping Requirements CHAPTER 9: Car and Truck Expenses Deducting Car and Truck Expenses in General Actual Expense Method Standard Mileage Allowance Leasing a Vehicle for Business Arranging Vehicle Ownership Nonpersonal Use Vehicles Credit for Plug-In Electric Vehicles Dispositions of a Vehicle Reimbursement Arrangements Recordkeeping for Vehicle Expenses CHAPTER 10: Repairs, Maintenance, and Energy Improvements Ordinary Repairs Rehabilitation Plans Qualified Improvement Property Small Business Safe Harbors Rotable Spare Parts Change in Accounting Method Special Rules for Improvements for the Elderly and People with Disabilities Lists of Deductible Repairs and Capital Improvements Energy Improvements CHAPTER 11: Bad Debts Bad Debts in General Collection of Bad Debts Business versus Nonbusiness Bad Debts Loans by Shareholder-Employees Guarantees That Result in Bad Debts Special Rules for Accrual Taxpayers Reporting Bad Debts on the Tax Return Collection Strategies CHAPTER 12: Rents Deducting Rent Payments in General Rent for Employee Parking The Cost of Acquiring, Modifying, or Canceling a Lease Improvements You Make to Leased Property Rental of a Portion of Your Home for Business Leasing a Car Leveraged Leases CHAPTER 13: Taxes and Interest Deductible Taxes Nondeductible Taxes Deductible Interest Nondeductible Interest and Other Limitations on Deductibility CHAPTER 14: First-Year Expensing, Depreciation, Amortization, and Depletion Section 179 Expensing Other Expensing Opportunities Bonus Depreciation General Rules for Depreciation Modified Accelerated Cost Recovery System Depreciation Methods Limitations on Listed Property De Minimis Safe Harbor Rule Putting Personal Property to Business Use Amortization Depletion CHAPTER 15: Advertising Expenses Ordinary Advertising Expenses Promotion of Goodwill Prizes, Contests, and Other Promotional Activities Help-Wanted Ads Websites and Apps Social Media CHAPTER 16: Retirement Plans Qualified Retirement Plans Added Costs for Retirement Plans Credit for Plan Start-Up Costs Retirement Plans for Self-Employed Individuals Regular 401(k)s and Designated Roth Accounts Pooled Employer Plans (PEPs) Individual Retirement Accounts COVID-19-Related Rules Disaster-Related Rules State-Sponsored Plans for the Private Sector When to Take Action Plan Problems and Corrections Comparison of Qualified Retirement Plans ESOPs Retirement Plans Owning Your Business Terminating Plans Nonqualified Retirement Plans Glossary of Terms for Retirement Plans CHAPTER 17: Casualty and Theft Losses Casualties and Thefts Condemnations and Threats of Condemnation Disaster Losses Deducting Property Insurance and Other Casualty/Theft-Related Items Disaster Assistance CHAPTER 18: Home Office Deductions Home Office Deductions in General Actual Expense or Simplified Method Actual Expense Method Simplified Method Special Business Uses of a Home Mobile Offices Ancillary Benefit of Claiming Home Office Deductions Impact of Home Office Deductions on Home Sales CHAPTER 19: Medical Coverage Health Care Mandates Deducting Medical Insurance for Covering Employees Deducting Health Coverage for Self-Employed Persons and More-Than-2% S Corporation Shareholders Using Reimbursement Plans Tax Credit for Contributions to Employee Health Coverage Shifting the Cost of Coverage to Employees Health Savings Accounts (HSAs) Archer Medical Savings Accounts (MSAs) COBRA Coverage Wellness Programs Reporting Health Coverage on W-2s Glossary of Terms for Health Coverage CHAPTER 20: Deductions and Tax Credits for Farmers Farm Expenses Interest on Loans Qualified Business Income Deduction Farm Losses Farm-Related Tax Credits Nondeductible Farm-Related Expenses CHAPTER 21: Qualified Business Income Deduction General Rules Qualified Trade or Business Qualified Business Income Basic Limitations Specified Service Trades or Businesses Other Limitations Partnerships and S Corporations Understatement Penalty CHAPTER 22: Miscellaneous Business Deductions Other Business Expenses in General Moving Expenses Educational Expenses Charitable Contributions Made by Your Business Licenses and Permits Dues and Subscriptions Legal and Professional Fees Bank and Merchant Fees Supplies, Materials, and Office Expenses Uniforms and Clothing Insurance Commissions Outsourced Workers Payments to Directors and Independent Contractors Penalties, Fines, and Damages Meal Costs for Day-Care Providers Expenses of Persons with Disabilities Dividends-Received Deduction Foreign Housing Deduction Other Expenses Checklists of Deductible and Nondeductible Items CHAPTER 23: Roundup of Tax Credits Employment-Related Credits Work-Related Personal Credits Capital Construction—Related Credits Other Tax Credits General Business Credit Credits Offsetting Employment Taxes PART 4: Tax Planning for Your Small Business CHAPTER 24: Income and Deduction Strategies Tax-Saving Tips Audit-Proofing Your Return Common Errors and How to Avoid Them Tax Assistance CHAPTER 25: Distributions from Your Business Distributions from a Sole Proprietorship Distributions from a Partnership Distributions from an S Corporation Distributions from a C Corporation CHAPTER 26: Tax Strategies for Opening or Closing a Business Initial Tax Decisions to Make Investing Your Own Resources Debt versus Equity Financing Tax Identification Numbers Tax Reporting for the First Year How to Write Off Start-Up Costs Setting Up a Business Bank Account and Credit Card Moving a Business Aborted Business Ventures Bankruptcy Expenses of Winding Up a Small Business Tax Reporting in the Final Year CHAPTER 27: Tax Strategies for a Sideline Business Reporting Sideline Business Income Hobby Activities Business Expenses CHAPTER 28: Tax Strategies for Multiple Businesses Advantages and Disadvantages of Multiple Entities When to Run Multiple Activities within One Business Treatment of Multiple Corporations Tax Rules for Owners of Multiple Businesses CHAPTER 29: Alternative Minimum Tax Alternative Minimum Tax Basics Deduction Limits for Alternative Minimum Tax Credit Offsets Minimum Tax Credit CHAPTER 30: Other Taxes State Income Taxes Employment Taxes Self-Employment Tax Additional Medicare Taxes for Individuals Sales and Use Taxes Excise Taxes CHAPTER 31: Filing Tax Returns, Paying Taxes, and Making Refund Claims Income Tax Deadlines and Extensions Online Filing of Business Income Tax Returns Estimated Taxes Making Tax Payments Claiming Refunds Filing Other Business Returns CHAPTER 32: Retirement and Succession Planning Retirement Planning Social Security Planning Exit Strategies Financing Options to Fund Buyouts Consulting Agreements Estate Taxes Estate Planning Concerns CHAPTER 33: Working with CPAs and Other Tax Professionals Types of Tax Professionals Finding a Tax Professional Tips for Selecting a Tax Professional CHAPTER 34: Handling Audits with the IRS Types of Audits Appeals Litigation Mediation Taxpayer Bill of Rights Taxpayer Advocate Service Special Audit Rules for Partnerships APPENDIX A: Information Returns Dividends Large Cash Transactions Payments to Independent Contractors Pension and Retirement Plan Distributions Retirement and Employee Benefit Plans Small Cash Transactions Wages Merchant Transactions Foreign Accounts APPENDIX B: Tax Penalties Failure to File a Tax Return or Pay Tax Failure to File Retirement Plan Returns and Notices Failure to File Correct Information Returns Failure to File Correct Payee Statements Accuracy-Related Penalties Preparer Penalties Penalty Relief APPENDIX C: Checklist of Tax-Related Corporate Resolutions APPENDIX D: List of Dollar Limits and Amounts Adjusted for Inflation Items Adjusted Annually for Inflation Items Fixed by the Tax Code Items Set by the IRS Index End User License Agreement