J.K. Lassers Small Business Taxes 2018: Your Complete Guide to a Better Bottom Line

The tax facts and strategies that every small business owner needs to know for their 2017 tax return and year–round planning

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 2018 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.

In this fully updated volume, you′ll find:

Detailed coverage of the newest tax laws, court decisions, and IRS rulings Planning strategies that can help you run a tax–smart business all year long Comprehensive information on each available write–off, such as the small employer health insurance credit, including dollar limits and record–keeping requirements Clear instructions on where to report income and claim deductions and credits on your tax forms Guidance on opening or closing a business, running a sideline activity or multiple businesses, and succession planning Help with state taxes and a guide to information returns you may need to file Sample forms and checklists to help you prepare for tax time

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Preface vii

Introduction xiii

Part 1 Organization 1

1. Business Organization 3

2. Tax Year and Accounting Methods 40

3. Recordkeeping for Business Income and Deductions 58

Part 2 Business Income and Losses 71

4. Income or Loss from Business Operations 73

5. Capital Gains and Losses 109

6. Gains and Losses from Sales of Business Property 130

Part 3 Business Deductions and Credits 145

7. Employee Compensation: Salary, Wages, and Employee Benefits 147

8. Travel and Entertainment Expenses 187

9. Car and Truck Expenses 218

10. Repairs, Maintenance, and Energy Improvements 249

11. Bad Debts 268

12. Rents 282

13. Taxes and Interest 294

14. First–Year Expensing, Depreciation, Amortization, and Depletion 311

15. Advertising Expenses 351

16. Retirement Plans 359

17. Casualty and Theft Losses 403

18. Home Office Deductions 419

19. Medical Coverage 440

20. Deductions and Tax Credits for Farmers 461

21. Domestic Production Activities Deduction 473

22. Miscellaneous Business Deductions 481

23. Roundup of Tax Credits 528

Part 4 Tax Planning for Your Small Business 541

24. Income and Deduction Strategies 543

25. Tax Strategies for Opening or Closing a Business 561

26. Tax Strategies for a Sideline Business 576

27. Tax Strategies for Multiple Businesses 581

28. Alternative Minimum Tax 588

29. Other Taxes 595

30. Filing Tax Returns and Paying Taxes 619

31. Retirement and Succession Planning 633

32. Working with CPAs and Other Tax Professionals 641

33. Handling Audits with the IRS 646

Appendix A. Information Returns 651

Appendix B. Tax Penalties 661

Appendix C. Checklist of Tax–Related Corporate Resolutions 669

Appendix D. List of Dollar Limits and Amounts Adjusted for Inflation 672

Index 677

BARBARA WELTMAN is an attorney and a nationally recognized expert in taxation for small businesses, as well as the author of many top–selling books on taxes and finance, including J.K. Lasser′s 1001 Deductions & Tax Breaks. She is also the publisher of Idea of the Day® and Big Ideas for Small Business®, a contributor to SBA.gov, is quoted regularly in major publications (including the New York Times, the Wall Street Journal, and Money magazine), and hosts a monthly radio show. Visit her at www.barbaraweltman.com.