Tax Deductions for Professionals: Pay Less to the IRS, 17th Edition

Cover
Title
Copyright
Acknowledgments
About the Author
Table of Contents
Introduction
1 Tax Deduction Basics
    How Tax Deductions Work
    The Value of a Tax Deduction
    What Professionals Can Deduct
    Professionals Who Lose Money
2 Choice of Business Entity
    Types of Business Entities
    Limiting Your Liability
    The Four Ways Business Entities Are Taxed
    Comparing Tax Treatments
    Should You Change Your Business Entity or Tax Treatment?
3 Operating Expenses
    Requirements for Deducting Operating Expenses
    Operating Expenses That Are Not Deductible
    Operating Expenses Paid With Paycheck Protection Program Loans
    Tax Reporting
4 The Pass-Through Tax Deduction
    You Must Have a Pass-Through Business
    You Must Have Qualified Business Income
    You Must Have Taxable Income
    Deduction for Taxable Income Up to $164,900 ($329,800 if Married)
    Deduction for Income Above $164,900 ($329,800 if Married)
    Taking the Pass-Through Deduction
    Strategies to Maximize the Pass-Through Deduction
5 Car and Local Travel Expenses
    Deductible Local Transportation Expenses
    The Standard Mileage Rate
    The Actual Expense Method
    Reporting Transportation Expenses on Schedule C
    When Clients Reimburse You
    Professionals With Business Entities
6 Long-Distance Travel Expenses
    What Is Business Travel?
    What Travel Expenses Are Deductible
    How Much You Can Deduct
    Maximizing Your Business Travel Deductions
    Travel Expenses Reimbursed by Clients
7 The Home Office Deduction
    Qualifying for the Home Office Deduction
    Calculating the Home Office Deduction
    Simplified Home Office Deduction Method
    How to Deduct Home Office Expenses
8 Deductions for Outside Offices
    If You Rent Your Office
    If You Own Your Office
    If You Lease a Building to Your Practice
9 Deducting Long-Term Assets
    What Is a Long-Term Asset?
    Special Rules for Deducting Inexpensive Property
    Deducting Long-Term Personal Property: Bonus Depreciation, Section 179, Regular Depreciation
    Bonus Depreciation
    Section 179 Expensing
    Deducting Repairs and Improvements
    Regular Depreciation
    Deducting Real Property
    Intangible Assets
    Tax Reporting and Record Keeping
    Leasing Long-Term Assets
10 Start-Up Expenses
    What Are Start-Up Expenses?
    Starting a New Practice
    Buying an Existing Practice
    Expanding an Existing Practice
    When Does a Professional Practice Begin?
    How to Deduct Start-Up Expenses
    Organizational Expenses
11 Medical Expenses
    The Affordable Care Act (ACA)
    The Personal Deduction for Medical Expenses
    Self-Employed Health Insurance Deduction
    Deducting Health Insurance as an Employee Fringe Benefit
    Tax Credits for Employee Health Insurance
    Sick and Family Leave Tax Credits for the Self-Employed
    Adopting a Health Reimbursement Arrangement
    Health Savings Accounts
12 Inventory
    What Is Inventory?
    Deducting Inventory Costs
13 More Deductions
    Advertising
    Business Bad Debts
    Casualty Losses
    Charitable Contributions
    Clothing
    Disabled Access Tax Credit
    License Fees, Dues, and Subscriptions
    Education Expenses
    Entertainment and Meals
    Gifts
    Insurance for Your Practice
    Interest on Business Loans
    Legal and Professional Services
    Taxes
14 Hiring Employees and Independent Contractors
    Employees Versus Independent Contractors
    Tax Deductions and Credits for Employee Pay and Benefits
    Reimbursing Employees
    Employing Your Family
    Tax Deductions When You Hire Independent Contractors
15 Professionals Who Incorporate
    Automatic Employee Status
    Paying Yourself
    Employee Fringe Benefits
    Shareholder Loans
16 How You Pay Business Expenses
    Your Practice Pays
    Using Personal Funds to Pay for Business Expenses
    Your Client Reimburses You
    Accountable Plans
17 IRS Audits
    Anatomy of an Audit
    Tax Shelters, Scams, and Schemes
18 Record Keeping and Accounting
    Recording Your Expenses
    Your Accounting System
    Documenting Your Deductions
    Accounting Methods
    Tax Years
Index